Actually, working from negatives is usually better than working from prints - the quality of negatives is better because prints are inevitably one generation removed from the originally-captured image. Also "light boxes" (or the more capable light tables) provide a much better illuminant for analysing imagery than shining a spot lamp onto a print.
That's right; the Germans just didn't have as flexible an approach to analysing what they were looking at as the Brits. That was the principal difference between British and German Photo Recon.
Most importantly the Luftwaffe didn't have any alternatives.
Actually they did. The Fw 190 could carry a wider range of cameras that the Bf 109 and it had performance to boot, the problem was, the number the LW had weren't utilised as extensively as the Bf 109, which seems peculiar since the Fw 190 was a better fighter with more growth potential than the Bf 109. There was a F 190D that was converted with oblique cameras mounted to photograph out the fuselage side, similar to PR Spits, but little was done with it. The Germans experimented with a wide variety of different aircraft types for the specialised out-of-theatre recon role, including the Henschel Hs 130, Arado Ar 240, Do 335 etc.
If the ground organisation had been the slickest in the world, the priority the highest and number of flights increased, they still wouldn't have been nearly as effective.
Having read your comment prior to doing the reading I've done, Glider, I would agree, but I'm not so sure about that now. Prior to the outbreak of WW2 the German intelligence system and aerial recon was quite sophisticated - far more so than anyone else in Europe, including the UK. In fact, Britain lagged behind Germany in terms of the number of aircraft and the systems in place to use the information gleaned from the recon flights. Prior to the outbreak of WW2, one fifth of the Luftwaffe's total number of aircraft were dedicated recon types, stategic, tactical, weather etc. As early as the late 1920s the Germans were carrying out clandestine recon flights over potential enemy countries' borders and had a better idea of the disposition of its enemies' forces than others had of its. Long before anyone else had thought of the idea, the Germans had the Wekusta, which were specialised weather recon units that carried out long ranging flights into enemy territory. The Wekusta continued its largely unrecognised role throughout the entire war.
The big enthusiast for the subject of PR in Germany was a chap by the name of Theodor Rowehl, who has been called the 'Sidney Cotton' of German PR, but in fact his work pre-dates Cotton's and it should be the other way round. Rowehl used Lufthansa aircraft fitted with hidden cameras in sliding hatches years before Cotton converted his Lockheed 12, including a Junkers W 34, which had broken an altitude record, a couple of the early pre-production He 111 prototypes and an He 111C airliner. His primary type of choice was the Do 17, however, owing to its high speed and altitude for the time - it was virtually unstoppable.
As his efforts became better recognised he was recruited by the Abwehr who established a special out-of-theatre strategic recon unit, which eventually was named Kommando Rowehl in his honour. The Ju 86P bomber recon aircraft were utilised on raids on the UK at his insistence. With a motley collection of types pre-war, his unit was largely responsible for photographing large swathes of Czechoslovakia, Poland, France and Britain, all of which was very useful to the German military. He was the driving force behind modifying many German aircraft prototypes as reconnaissance aircraft - he became well known for his enthusiasm for the task and was not discouraged - unlike Cotton to begin with. It was from Rowehl's unit that the roots of KG 200 grew from - KG 200 also had Wekusta aircraft in support of its activities.
Like I stated earlier, the Nazi organisation (petty jealousies, empire building, currying favour with the Fuhrer etc) let its formidable recon assets down. Goering himself had little interest in what Rowehl was up to despite the enormous potential of the organisation he had helped to create, with the assistance of the Abwehr and Canaris personally. Like many things during WW2, the Germans initially had the upper hand in terms of aerial recon over and above anyone else in the world, but lost that lead rather quickly (except in terms of battlefield in-theatre recon, which they performed expertly) once the shooting started.