it's about inciting unrest against the peace of the land, specifically targetting some specific group of humans.
https://www.gesetze-im-internet.de/englisch_stgb/englisch_st...
so a better example would be ditib mosques to systematically suggest to their faithful to poorly service Germans and give them higher prices.
or some German political party to suggest that our current problems are caused by "the Russians" and to suggest discriminating against kids off Russian expats is fine at school.
No, it's really not, we know this, because it's been tested. Look up Malik Karabulut who said exactly what I wrote (he was also insulting individual officials, but that's not what this is about). The DA did specifically say (and that wasn't a controversial decision outside of right-wing circles) it does _not_ apply to the majority.
Not it's not, it's about protecting minorities. You're free to say "Germans are a race of dogs" in response to parliament voting on recognizing the Turkish genocide against the Armenians, for example, because Germans are not a minority. You wouldn't be free to say "Turks are a race of dogs", that would be illegal.