You're going to have a lot easier time if you can read German, as most of the extant material hasn't been translated. For example, the diary of Brigitte Eicke, a teenager from Berlin, was recently published in German. Here's an English language write up on the diary by the German magazine Der Spiegel.

In addition, there is always the ever useful Victor Klemperer, a professor at the University of Dresden, who was born to Jewish parents but himself a converted Protestant, married to an "Aryan". Obviously, the Nazis considered him Jewish and, were it not for his so-called mixed marriage, he likely would have been murdered. As it turned out, he was called up for deportation the day before the Dresden bombings and was able to mix in with a refugee column and survived the war. Klemperer is especially loved by academics because he, himself, was an academic, and so his diaries tend to discuss topics that academics would enjoy reading about - such as the Nazi perversion of language for political ends.

Peter Fritzsche, in many of his books, makes use of a large cache of letters sent between the members of the Gebensleben family during the war that contain surprising detail. I remember in Life and Death in the Third Reich the family matriarch, Elisabeth makes the comment, something to the effect of, "It's terrible what is happening to the Jews, but we all know they brought it upon themselves, trying to bring down Germany like they do" or something very similar.

Andrew Bergerson has a book on everyday life, entitled Ordinary Germans in Extraordinary Times, and William Sheridan Allen has a classic work entitled The Nazi Seizure of Power: The Experience of a Single German Town. Finally, there is a Forum discussion on this topic in the journal German History (2009) 27 (4): 560-579., but it's behind a paywall.

There are a lot of other works that detail the life of Germans on the home front to a greater or lesser extent as well. Evans, Burleigh, Hagemann, Bessel, and Overy all discuss the home front to a greater or lesser degree.

To get to the specifics of your questions, based off of the above sources and my own general knowledge:

1. Its difficult to say what life was like for the average German on the street, as we'd first need to define average German. Surprisingly, most Germans didn't think things were all that bad. Yes, the war played a large role in their lives, but it did not prevent them from carrying on with said lives. Because of the Nazis resource extraction policies in their conquered lands, Germans themselves did not feel the deprivations that they probably should have felt, even late in the war. There was not, for example, large scale starvation. The greatest effect would have been the bombing campaign, which various authors have argued was not as effective as the Allies would have liked. As the first diary I linked above, from the teenage girl, relates, she went to school one day to find the school building had been bombed, so she went to a friend house and they danced the day away. Now the war would have really come home after Allied armies actually invaded and occupied Germany. The mass rapes perpetrated by the Soviets are pretty well known, but deprivations were experienced in the West as well, as the Allies made certain that supplies should go first to the victims of German terror before Germans got them at all. This is, in part, why pretty much any German alive at the time would tell you that the worst period was 1945-1946, not during the war itself.

2-4) Many Germans likely did not know about the worst elements of the Holocaust (i.e. the shootings or the death camps), but they certainly could have known had they bothered to ask the question, and in many scholars', myself included, estimation, probably should have known. Discrimination, deportation, looting of Jewish businesses, etc. were all well known. These elements of the Holocaust were not hidden from the public in the slightest. Further, Hitler had made clear in his public pronouncements that the ultimate destruction of the Jewish people would happen should Germany find itself in another war. In addition, wives were, in some instances, allowed to accompany their husbands to duty at stations behind the lines (i.e. not in combat but in occupation roles), even at concentration camps. Escapees from the camps were not uncommon. The Western Allies were well aware of the organized genocide by mid 1942, at the latest. There is no reason that the German civilian population, had it been looking for the evidence - or more likely, not actively trying to avoid seeing the evidence - wouldn't have see it and came to the same conclusions. Peter Fritzsche makes the argument that when it came to Aktion T4, the so-called Euthanasia Program in which the Nazis murdered disabled individuals, German protested because they could imagine themselves in the shoes of the disabled. When it came to Jews, however, Germans were silent because they could not imagine themselves being Jews.

5. You're going to have to be more specific on what you mean by "Hitler's goals", so failing that, I'll speak in broad brush strokes. The evidence strongly suggests that German supported Hitler and the Nazi party enthusiastically, with obvious exceptions of socialists, communists, and other enemies of the regime, up until about 1941-1942. Once the war started going against the Germans, support for the regime dropped accordingly. Hitler was, by and large, a huge success in the late 1930s, accomplishing many longstanding goals of German politicians without firing a single shot. The initial victories of 1939-1940 only bolstered his support. Military victory tends to do that to leaders, whether democratically elected or not. I would be remiss if I didn't point out that George H.W. Bush's approval ratings were through the roof in the immediate aftermath of Operation Desert Storm - and that was against Iraq, a country most Americans couldn't locate on a world map. Now imagine those victories were against the largest enemy of the nation (in Hitler's case against France) and you can imagine how popular that would make any leader. How much support for Hitler correlates to support for Hitler's anti-Jewish policies is more difficult to say. Kershaw, in The Hitler Myth (at least I think its here) makes the point that many Germans believed Hitler was above all of the evil that was occurring. Statements like, "If The Fuehrer knew what these local ruffians were doing to the Jews, he would certainly stop it." were not unthinkable. Hitler was, after all, the subject of a cult of personality. Further, historian Claudia Koonz has cogently argued that the anti-semitism of the Nazis was not what attracted Germans to Nazism, rather it was Nazism that attracted Germans to anti-semitism. This is to say, Germans became anti-semites because they were Nazis, not became Nazis because they were anti-semites. We tend to associate Nazism with antisemitism because of the Holocaust, but suffice it to say, it was an ideology that had many, many other facets, many of which would not be considered bad even by modern American standards (these run the gamut from belief in physical exercise to sexual liberation to emphatic patriotism, etc.). So the argument goes, Germans bought into these other elements, and swallowed the anti-semitism along with them.