I'm German myself and knowing what jokes are and how it was made up I didn't feel offended by the original.

The song itself is a cover of an advertisment for a beer glass formed in the shape of a boot, that indeed does throw in all those German stereotypes, showing that you can basically put everything "German" in there. You can even see how they don't even take themselves serious there as they even put in a clip in the end where the marketing team is more than just confused by how weird and stupid that whole thing is.