I thought the same 20 years ago. The positive outlook was common sense at the time, not an exaggeration. The overall vibe was inclusive, we had open borders in Europe since the 90ies, and German public opinion pro-European and progressive-leaning.

Neonazis were a thing, but a niche phenomenon. Angry young man. Not a part of mainstream society and everyone from conservative teachers to rock bands were 'against nazis', whatever this means.

The situation has changed indeed and it is somewhat scary. Right-wing (including fascist) talking points get significant air-time in the media. Politicians use language that appeals to far-right voters much more openly, dog whistles maybe.

The society is more divided these days. Bavaria votes next weak and you will see a strong divide between urban and rural. Trivial things like how to address groups of people including all genders are heated debates. Rational policies towards solving the climate crisises are stalling because change is seen as an attack on a livestyle. Better: Propaganda frames everything as a cultural war. Your vegan sandwhich, that's war against cattle farmers.

Source: German