I think the point Dave was getting at is how much more could have been achieved had Germany channeled Pz I and II production into expanded SPW production and built that into a light tank instead.
Most historians seem to gloss over the fact that, Hitler convinced his Generals [and Admirals] that German would not have to fight a major European war until they would be ready in the mid 1940s, so they still had plenty of time. Basic German risk theory always recognized that Germanys neighbors would not sit idly by and just let her rearm. So any rearmament programme had to be as secret as possible and built around an expectation of imminent war along the lines of WW-I.
But Hitler ignored all this and gambled Germanys future away based on his misguided racial view that the war going to be a 'do or die' struggle between German/Europe and a Jewish led America/allied threat. He believed he could crush Russia and bully the UK into joining a grand alliance against America. After Munich he believed nothing could be gained by waiting and the major European powers were too weak to prevail against Germanys racial superiority.
Yeah good point, but the demag was already used for this as opposed to the hanomag, right alongside the scout tanks as a radio vehicle or SPG. They wanted tanks, ideally the Pz38 czech jobs with the good suspension and 37mm sköda gun (best prewar light/field antitank gun, some German antitank squads still used heavy rifles in 42).
To some degree the industrial logistics must tailor supply for their military's specifications on the basis of request. They won't always agree, but the military works better that way.
As we all know the PzI only entered line service due to production shortages, the way I heard it in the low countries half the scout tanks were PzI whilst Pz35 mosty were used to supplement PzIII. There was a shortfall in both PzIII and IV large tanks but it was muted by the tactics used, the full commitment of German forces at finite locations and a bit of luck.
Demag production could've been geared up but Hanomag production was already maxing out because it couldn't fill the orders it had. Everybody wanted them as an APC, a military tractor and an armoured utilitary vehicle, not to mention the subvariants. The old 6 and 8 wheeler armoured cars needed replacement, artillery needed the other half tracks for tractors, Germany had a superpower military with small nation industry, half the entire infantry force according to logistical records and personal photos in 1941 were still equipped no differently to the Kaiser's troops thirty years earlier, complete with wood wheeled carriages pulled by horses and oversize rifles you go hunting bears with, not urban warfare. That was the amazing technicolour dreamcoat that was the true German war machine.
The mistaken belief the Wehrmacht was on the whole technology superior to anyone is ridiculous, all history has ever talked about on that score is local superiority gained by concentrating your best forces and any reinforcements you can muster, most of it related to industry.
Germany couldn't equip all its formations with current basic materiél, how could it possibly choose logistical supply besides "just send us whatever you've got"?