In the beginning of the 19th century, the question what it means to be a German was highly discussed and the answers varied greatly. The self-image of the Germans was also highly divided by the geographical situation. It’s not only important to differentiate between protestant and catholic Germans, it’s also important to differentiate between the Länder; Austria and Germany are still federal states. Also, the differences between city and country are huge. Therefore, my answer will be kind of superficial. But then again, stereotypes are superficial, too…
More cultivated or culturally advanced, cosmopolitan and superficial, don’t align heart and reason
When they do something, they do it really good, being barbaric/antiquated, not as sophisticated as Austrians, more intuitive
Austrian Germans were seen as more cultivated with a greater sense of aesthetics and a more cosmopolitan worldview. They understood themselves as being superior to the German Empire in a sense of these spheres. But then again, they saw the Germans of the German Empire as more advanced in the field of the spirit; Germany as the land of the poets and thinkers. They would see the Germans of the German Empire as more antiquated but when they do something, they do it better than anybody else. You can see this worldview in Austrian literature. For example, in Robert Musil’s “The Man Without Qualities”. The Austrian elite arranged everything for their plans to create a “Weltösterreich” (world’s Austria, Austrian culture all over the world) but to accomplish it, they need a Prussian leader; even though they don’t like the idea of giving the power to a Prussian. But it’s the willpower of the German soul, which is needed. Furthermore, a German character in the book says the modern, cosmopolitan lifestyle [of the city’s Austrians] is too rational, which leads to the division of the heart. Therefore, they stop being human.
It’s also very interesting to mention that some groups of (non-Nazi, Jewish, socialist, idealist and cosmopolitan) Austrians liked the idea of being united with the German Reich in the 1930’s because the unification would bring the benefits of the stereotypes together. Some resistance movements against the Nazis formed after realizing that the Nazis would treat Austria just like a colony. Therefore, a real unification wouldn’t happen. So, they fought for the “Holy Germany” against the Nazis. They wanted to be united with their German brothers because they wanted to share the spiritual homeland, where Heinrich Heine and Goethe were born.