Hot Take:
Should have used the U-Boat MAN 2100hp Diesels, and their fuel, for US style Locomotives instead of sub warfare for moving things around central Europe and parts East.
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No Water stops: long range, work great in freezing weather. far higher speed for similar tractive effort. Move that freight fast. 100mph vs 50
Steam locomotives and barges had the big advantages of being able to use coal directly rather than having to first convert the coal to a very expensive liquid fuel.
Also, steam locomotives were a fairly mature technology at that point, and largely worked "well enough". I suspect Germany got a better return on investment in R&D and manufacturing by using those resources for something else.
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