The Battle at Stalingrad (Nov 1942) was the end-point of any German enthusiasm or hope. Just about every single German general at that point, realizing the Soviet victory there...knew the end was coming in a very harsh way.
This suggestion of Dresden by the psychiatrist...is a fairly minor detail, at least across the entire nation. Maybe for locals, their enthusiasm evaporated completely.
Not much fun in Stalingrad, no . . .
"Alle sieben Sekunden stirbt ein deutscher Soldat. Stalingrad Massengrab."