That's interesting. So in the above (and genuine question because the arguments have started!) are you assuming in "German victory" to include victory in North Africa? Or do you think occupation of Eastern European territories is sufficient.
I'm looking at a scenario where Germany met all its war aims; Europe, USSR under direct control and other areas under control of friendly governments or Axis allies. A victory leaving just Germany, France and Poland wouldn't be enough, it wouldn't have given them the resources, the living room or the people that the German plan needed.
I think Germany were stuck once they started the War, they had to win, just gaining the surrounding countries didn't give them what they needed; by 1942 they should have really tried to settle before the tide really turned against them, once it did, they had no hope of any kind of negotiated peace that didn't involve complete surrender and would've made the terms of Versailles seem generous.
As to the conduct of the whole war there are lots of 'what ifs', 'why didn't they'
Why didn't they destroy the RAF in the battle of Britain?
Although the change to city bombing relieved the strain on the RAF, the RAF never had to fight if they didn't want to, they could have preserved their strength by moving aircraft north only using them when it really mattered, such as during an invasion. Yes, this leaves the south vulnerable to air attack but that doesn't make nations surrender - just look at how heavily Germany's cities were bombed, didn't stop them.
Why didn't they finish Britain off?
They couldn't, look how hard it was for us to invade Europe with overwhelming sea and air power, Germany had nothing near the sea lift required.
Why invade the USSR?
Although allies at the start of the war neither side was under any illusion that they were friends and couldn't have been further apart on ideology, pretty much the entire point of the war was to take the USSR and its resources and to enslave it's people. Germany knew that the USSR wasn't ready and needed to invade before it was, as once mobilised it would become a very different game. Things might have gone better for Germany here if his Allie Italy hadn't got in trouble in Africa forcing a reinforcement to that area that delayed the Russian campaign. Germany needed a quick win, before the winter and that delay might have been the step that saved Moscow.
Why didn't they use strategic bombing like the Allies?
Germany lacked the resources and manpower to have everything and had to decide where its priorities lay, had it invested in bombers it would have had less of something else - and as mentioned earlier, unlikely to make your enemy surrender.
Why didn't they win in North Africa?
Again they don't have the resources, give more here and we delay the Russia campaign even more. Germany and Italy might have been better giving up here earlier, a campaign that was really tough to win for the Axis that was tieing down troops that could have really made a difference in Russia. They were of course keeping many allied units busy but it's not as if they could have been used elsewhere at this time and would've just been languishing in the UK, instead they were given opportunity to contribute to the war.