I think your entire position is flawed here and your question stems from confusing the governmental policies of the respective "overlords" with the of the actual people.

I wouldn't say the east and west Germans hated each other at all. The reunification was one of the most joyous and desired events from both sides when it comes to the general populations. One need only look at the massive celebrations that occurred as a result. Do not confuse the governmental policies with the will of the people. The split was never a willing event by either side of the general population.

And yes, it was basically geographic. Since the allies had agreed to divide Germany into administrative regions, it wouldn't make much sense at all to flip and reverse their respective geographic responsibilities would it? Yes, Berlin existed entirely within Eastern Germany, but was split for political reasons, and we saw what a headache that resulted in. Now imagine if you flipped the entire thing.

Also, I know that the Nazis were socialists and not capitalists (corporatists is probably what they meant) or communists.

The DAP added "national-socialist" (i.e. socialis with a nationalistic slant) to their name for propaganda purposes but they were never socialist. They actually considered socialists and communists as their biggest ideological enemy. It should however be noted that fascism is a form of anti-capitalism, just a different one. Capitalism is not an ideology, it's just a way to structure an economy.

The successor nations of Nazi Germany were the E. and W. Germany.

The German Democratic Republic refused to see itself as a successor state to the German Empire and considered herself an entirely new socialist state, liberated from fascist oppression by the Soviet Union. The Federal Republic of Germany however took up the mantle of being the successor state of the German Empire, whose diplomatic and contractual obligations were acknowledged as still binding.

Is it simply because of geography that the Easterners became communists since they were closer to the Soviet Union, and the Westerners became socialist/capitalists like the Western Europeans by dint of geography?

After the war, Germany was partitioned into 4 zones, which were administered by the 4 leading allied nations: Great Britain, the US, France and the SU. Those zones had been negotiated between the allies. You are correct in saying that it came down to geography in the end, since every occupant other than the US got a zone that was closer to their own country. Austria was occupied in a similar fashion.

Or were the pre-War populations of those areas already intrigued by those economic distribution models the same way that North Eastern Americans like the Progressive Party and the South East Americans tend to like the Conservative Party?

There are stark cultural differences between northern and southern Germans but I see no connection to Cold War era politics.

How did the Eastern Germans view their contributions to WWII,

Mostly denial, especially regarding war crimes. German workers had been forced to fight in a war by a fascist regime. Now they were free. But still, they had brought lots of destruction on Europe and so Germany had to suffer to repay.

, and their new Overlords - the Soviets? It must have been awkward to teach the youth that millions died at the hands of the Soviets, yet these Soviets have helped written those same history books. Also, did they view the Soviets as their friends,

East german propaganda and education was glorifying the Soviets for liberating the People. Also lots of denial about soviet soldiers murdering, plundering and raping. Obviously it's difficult to gauge to what degree average people actually believed the propaganda, especially because most would eventually have western television and would have listened to western radio for non-propaganda news. Undoubtedly there were many who either truly believe in the socialist cause and saw the repression of the state as a necessity on the way to Socialism, which was expected to become the state of society after three generations at the earliest. (Though as always this differs depending on who you ask, as there were lots of different socialist and communist sub-ideologies.) Most probably weren't fooled and saw themselves occupied by the Red Army, which kept a sizable force in the country.

The abortive revolution of 1953 had demonstrated conclussively that the people were powerless to do anything about it as long as Moscow was ready to send in the tanks. As the decades went on, the people had it pretty good(although standards of living lacked behing the West by a quite obvious margin), as East Germany was the most visible of soviet satelite states. So they either left (if they managed to do so) or endured untill it became obvious that Moscow wouldn't intervene, at which point the revolution of 1989 started.

and the Western Germans as their enemies in your opinion?

Most people had family on the other side of the border. They would often recieve visits or packets from the West. This also led to a very active black market, which mostly operated with western Deutsche Mark. (People would even but up ads asking to do trades for "blue tiles", because the 100 DM note was blue at the time.) You could watch west german tv almost everywhere in East Germany. The notable exception was the aptly nicknamed "valley of the clueless" around dresden, were mountains blocked the signal. Many products that were sold in West Germany were produced in the East. During the later stages of the Cold War the West even gifted the East billions in hard currency to stave off economic collapse. While opinions differed on what the best course of action would be after the successful revolution against the east german state(as the protesters had only wanted democratic elections and a few other basic things at first and then suddenly the 2+4 Treaty happens), there was no notable resistance to re-unification and basically being taken over by the Federal Republic.

Here are my views on this episode: It's almost unbelievable that this even happened. I'm under the impression that the Germans were so upset and apologetic about their defeat that they over-compensated in their defeat. They did absolutely everything and more that their new over-lords wanted from them.

I don't see occurences of this over-compensation (at least in the west) before the Holocaust tv series aired in 1978 an a sufficient number of war-generation germans had died so that public discourse could turn towards acknowledging the crimes committed during the war and coming to terms with it. But overall the Federal Republic saw itself as an important piece of NATO and not at all as a subjugated nation. The situation was somewhat different in the Democratic Republic but that's because the Soviet Union was very upfront about who called the shots. But still, the population at large grew ever more disilusioned with Socialism. They shed almost all of that ideology very quickly after re-unification. Thus it seems justified to say that neither side had managed to get the Germans fully into their camp. The only thing that kept either government in check was the threat of Red Army tanks rolling in and starting to kill people, which was much more likely to happen to Eastern German than to their western brethren but hindsight is 20/20.

It seems that their concessions after WWII were much more deeper than what was asked of them after WWI, at least culturally and (in the east) economically.

The Allies certainly set out to transform Germany into a state (and later two seperate states) in such a way that there wouldn't be a third world war. Both sides made huge efforts to impart their ideology on the minds of the people on their side of the border. It is interesting that the Soviets took a very obvious and punitive route, while the Western Allies tried to get into the German's hearts and minds mostly through economic benefit. To this day capitalism and democracy are intertwined in public discourse. This was done because the last time there had been democratically elected leaders in Germany, it had resulted in the worst economic crisis in recent history and Hitler's rise to power. The Federal Republic still didn't take up Capitalism as her way of organising the economy and instead opted for the "social market economy", which was supposed to take the best parts of both sides.