Hello! As a Dutchman this post stood out to me, while I am not an expert on WW2 history, I will explain the history behind the German invasion of the Netherlands as I understand it.

World War 1

The Netherlands maintained an armed neutrality throughout WW1 and declared itself to be neutral at the outbreak of the war, like Belgium. And just like Belgium, the Netherlands was militarily no match for the German Empire. Unlike Belgium however the Netherlands did not border any nations of the Allies, and there would be little military gain for the German Empire had it invaded the Netherlands. Not only would it have enlarged the area that needed to be occupied, it would have driven the newly formed Dutch government in exile to join the Allies, who could then make use of resources from the Dutch colonies in the Americas and Asia. The Netherlands were also an important trading partner for Germany during the war, as the Empire's waters were blockaded by the Royal Navy. Invading the Netherlands in WW1 was thus not seen as something that would be advantageous by the Germans.

Interbellum

During the 1920s and 1930s the Dutch economy would be hit hard by the Great Depression. Investment in the military effectively came to a standstill until then end of the 1930s. While the military brass of the Netherlands was aware of the aged equipment and the importance of tanks, anti-tank weapons and sub-machine guns, none of these weapons were purchased. Only in the latter half of the 1930s did modernisation begin, and by that time many countries such as the United Kingdom, France and Germany were already busy with their own rearmament programs and could thus not supply new weapons in any great numbers.

When the Germans invaded the Netherlands on 10 may 1940, the Dutch soldiers were armed with 45 year old rifles, machine guns dating back to WW1, no tanks, 39 armoured cars, too few mortars and only 52 pieces of post-WW1 artillery. The military had been able to acquire new anti-tank guns and anti-aircraft guns however. The airforce was in a slightly more modern shape, flying a mixture of biplanes and more modern fixed-wing aircraft, but had to deal with unpreparedness and only 70 modern planes in total. When the troops were mobilised in August, not much time was spend training the troops, most soldier spend their time building bunkers and trenches instead of actually gaining military skills.

World War 2

The German plan to invade of the Netherlands was primarily born out of the failures of WW1. The Germans had been unable to defeat France, and this was partially attributed to the fact that the Belgian front had been to narrow in the rear. To solve this, the Dutch province of Zuid-Limburg would have to be invaded to give the Germans more space to manoeuvre. The Netherlands could also serve as a beachhead for the British, which was of course not favorable for Germany. While the Dutch and German armies would have been quite similarly armed in 1914, the Germans now greatly had the upper hand when it came to firepower and mobility. The German soldiers and officers were also more experienced due to fighting in Poland.

While the Dutch military put up a good fight and even won a number of battles, such as the Battle for The Hague and the Battle of the Afsluitdijk, they were unable to do much about German air superiority once the small Dutch airforce had been mostly destroyed. After the Bombing of Rotterdam, the Germans threaten to bomb Den Haag, Amsterdam, Utrecht and Haarlem if the Dutch government did not surrender, which it did. By the time the Netherlands capitulated on 15 May, half of the country was already taken by the Germans, and only in the province of Zeeland did fighting between Dutch and German soldiers continue for a little less than two more weeks, with the help of the Belgian, French and British forces.