Wouldn't the German war efford gain more from a captured Ukraine which was positive towards the Germans? I remember a historian making a case that the German supply lines and manpower on the eastern front would've benefited a lot from a more friendly approach. Instead they put most of the OUN leaders in concentration camps. Whas this a miscalculation on the Nazi's part?
edit I should rephrase the title, many Ukraininans in the western part of the country saw the invasion as a liberation, certainly not most.
Germany never intended to reinstate Ukrainian state, but link you've provided is perfect example of one logical fallacy.
Reinhard Heydrich ordered to arrest OUN-B leaders on September 13th 1941. And the main reason stated in his Directive - numerous murders of OUN-M members by OUN-B members, Heydrich described it as "terror acts".
OUN spliited into two hating and murdering each other groups yet in 1940, OUN-M (M is for Melnyk, can be described as moderates) and OUN-B (B is for Bandera more radical).
Both groups eventually were disillusioned in German intentions and future of the Ukraine in the Reich. Galicia was incorporated into General Government in August (both Melnyk and Bandera have objected but still pledged allegiance to Hitler), tension between two parties led to investigation and arrest of OUN-B leaders, and many of OUN-M leaders were arrested in November.
Still many OUN-B and OUN-M members served in local police, and even joined 14th Waffen Grenadier Division (strongly supported by OUN-M).
You have to consider what Germany's end goal was, not just their immediate goal. Obviously their immediate goal was to win the war with Russia. But their end goal under Generalplan Ost (the long-term German plan for what to do with Eastern Europe) the conquered territories were to be "Germanized".
That meant exterminating, enslaving, or deporting most of the inhabitants, and moving in German settlers.
The end goal of this plan was for Poland, Ukraine, Western Russia, etc. to become ethnically German territories with a racially pure population.
In Ukraine, part of the plan was to seize food supplies to accomplish the twin goals of feeding the Reich and exterminating ethnic Ukrainians.
Viewed from that perspective, it is perhaps easier to see why the Germans were not eager to form an alliance with sympathetic elements in Ukraine - they viewed them as subhumans, and as standing in the way of their eventual plan to Germanize the region.