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I wonder if the luftwaffe is overrated or not.
Personally I think that reddit's logo icon say it all. But if you really mean your question then you'll need to add a time to your question. Early in the war? Late in the war? This is not the place to rehash the Luftwaffe's performance during the entire war but in general:
On February 26, 1935, Nazi leader Adolf Hitler signs a secret decree authorizing the founding of the Reich Luftwaffe as a third German military service to join the Reich army and navy. In the same decree, Hitler appointed Hermann Goering as commander in chief of the new German air force. While Goering was a highly decorated WWI flier he simply was not up to running the entirety of the Luftwaffe
The Versailles Treaty that ended World War I prohibited military aviation in Germany, but a German civilian airline–Lufthansa–was founded in 1926 and provided flight training for the men who would later become Luftwaffe pilots.
The development of theLuftwaffe was to be an uncamouflaged step-by-step procedure so as not to alarm foreign governments, but the size and composition of Luftwaffe units were to remain secret. However, in March 1935, Britain announced it was strengthening its Royal Air Force (RAF), and Hitler, not to be outdone, revealed his Luftwaffe, which was rapidly growing into a formidable air force.
As German rearmament moved forward, Britain and France protested but failed to keep up with German war production. The German air fleet grew dramatically, and the new German fighter–the Me-109–was far more sophisticated than its counterparts in Britain, France, or Russia. The Me-109 was bloodied during the Spanish Civil War; Luftwaffe pilots received combat training as they tried out new aerial attack formations on Spanish towns such as Guernica.
The Luftwaffe was configured to serve as a crucial part of the German blitzkrieg. As German panzer divisions burst deep into enemy territory, lethal Luftwaffe dive-bombers would decimate the enemy's supply and communication lines and cause panic. By the outbreak of World War II in September 1939, the Luftwaffe had an operational force of 1,000 fighters and 1,050 bombers.
First Poland and then Denmark, Norway, Holland, Belgium, and France fell to the blitzkrieg. After the surrender of France, Germany turned the Luftwaffe against Britain, hoping to destroy the RAF in preparation for a proposed German landing. However, the RAF fliers successfully resisted the Luftwaffe. For every British plane shot down, two German warplanes were destroyed. In the face of British resistance, Hitler changed strategy in the Battle of Britain, abandoning his invasion plans and attempting to bomb London into submission. However, in this campaign, the Luftwaffe was hampered by its lack of strategic, long-range bombers, and in early 1941 the Battle of Britain ended in failure.
Britain had handed the Luftwaffe its first defeat. Later that year, Hitler ordered an invasion of the USSR, which after initial triumphs turned into an unqualified disaster. As Hitler stubbornly fought to overcome Russia's bitter resistance, the depleted Luftwaffe steadily lost air superiority over Europe in the face of increasing British and American air attacks. By the time of the D-Day invasion of Normandy in June 1944, the Luftwaffe air fleet was a skeleton of its former self.