While the RN might have been concerned about the Deutschland class, they still had 4 ships better armed and faster (HMS Tiger was not yet scrapped). The French, on the other hand, were terrified. Their promise to assist Poland in time of conflict was out the window - with the superior speed and fire control of the pocket BBs, there was no way the WWI BB/treaty cruisers could force their way into the Baltic. Therefore, the Deutschland class are exactly what Germany needed at the time.
Hitler is going to send a lot of you to the gas chambers - he absolutely doesn't want war with UK until he has ensured he won't be fighting a 2 front war. So, if you're building anti UK materiel, have your gas mask handy. Germany doesn't have the cash to buy 10k tons of lead from England and UK probably isn't selling Germany lead for submarine batteries anyway. So, building more submarine earlier wasn't happening. Germany would have been more than happy for RN to pay top £ for armour plate even after they invaded Poland had they not declared war.
Everyone wants/expects to get to refight the last war with better equipment and avoid the issues of the last war...
In WWI, the RN/USN mined from Scotland to Norway, effectively trapping High Seas Fleet in harbour.
Therefore, Raeder's #2 objective is to secure Norwegian ports north of Stavanger so German navy won't be completely useless. There is also iron from Narvik as secondary bonus.
There are next to no roads and very limited railroads in Norway (both easily defended/destroyed), so the Kriegsmarine needs to be able to secure the coast/deliver Heer.
Now, in WWI, the Americans learned that aviation was critical to army operation, and in Cuba, the Marines learned that planes could provide flying artillery.
So, building on my earlier building program, the KM needs a couple/three additional CVLs. (One for forces at Bergen, 2nd at Trondheim and last at Narvik, all 3 being beyond the return range of German based bombers/fighters) They don't need fleet carriers; they need something to provide temporary base until Luftwaffe/Heer has seized the Norwegian bases. Do the trio of "Baltic carriers cause the RN to change their build programs? I'm swapping at least Prinz Eugen and Graf Zeppelin to get the CVLs. Big guns might still be what the navy wants, but Goering controls the purse strings. Having Kriegsmarine as mere transport for his planes will get the ships.
Forces also need something to provide "distant cover" so the RN/NM, don't just roll in. I can't see anything short of BB doing so - so my naval strategy needs Bismarck and Tirpitz (maybe slightly smaller than historic 4x2 -35cm/35k tons) in place of the historic Gneisenau and Scharnhorst after the D class, 3rd Leipzig CL and Leipzig based CVL from my original build.
Note: If Germany had pulled out of Norway shortly after their invasion, the British Army would have been there the next day and all exports of Narvik iron to Germany would have stopped and North Sea mined tight.
Returning to what when wrong/could have been done better in WWI.
If you read Hitler's writings, war against Russians in evitable.
While the Russians were sealed off in the Baltic, a bunch of material was supplied year round via Murmansk/Arkhangelsk in both wars.
As
Z
z42 indicates, Germans attempted to go from northern Norway and through Finland, but again that no road thing got in the way. And distances prevent effective use of Luftwaffe. So, they never closed supplies down.
Therefore, Kriegsmarine again needs to provide air support/transport, so troops can land right on the doorstep at both locations. Then Heer may use the existing RR lines to transport troops from north against both St. Petersburg and Moscow.
Navy is going to lose some ships, so Flugzeugträger B for sure will be additional CVL.
If Stalin isn't getting any support from UK, he might be tempted to cut his losses and sign a peace treaty.
Battle of Dogger Bank demonstrated that being able to outrun RN was important.
My issue is - while Admiral Hipper treaty cruisers can probably out run Counties, air power has improved by a magnitude. And FAA is designed to put a torpedo into enemy ship to slow them down to where the big guns can finish the job. Without 20/20 hindsight, how does one know high pressure steam is going to have all sorts of issues? (Panzerschiffe D might help, but is it early enough). Another part of problem - Germany needs cash, hence the selling of Lützow to Russians.
Why would KM not build AH cruisers more like the proposal for French BB Gascoyne (dual twin 20.3cm turrets fore and aft), but finish them with "special" 8" (aka 28cm) guns? (I'll sell the unfinished dual twin 20.3cm turrets to Russians as part of the Lützow deal.
There's also idea of converting the Deutschland class to dual twin 20.3cm turrets to get additional 'legal' capital tonnage for a 3rd Bismarck class. AGNT would allow transfer of 5k tons from say carrier to capital ship buckets). Offer to put dual twin 20.3cm turrets in Deutschland/AS/AGS being 'carrot' to RN to help get AGNT.
Lastly, I need some sort of ADP to be able to travel via river to Black Sea. Allowing KM to control Black Sea/transport troops to Caucasia early in Barbarossa. Opening 2nd front as it were. We also need to be able to assist Turkey in keeping the RN out of the Bosphorus Strait.
Once Nazi's have the oil of Caucasia and Bulgaria, food supplies of France, Hungary, Poland and Ukraine, iron from Sweden/France, Copper from Poland; if UK still wants to make war, KM may draft up naval plans to address the issue. If Germany can have good relationships with Turkey, the Chromium, Cobalt, Nickel that are needed for high temperature alloys would be out there.