The KM is a small navy on the strategic offensive. Guerre de course is its only option when facing the largest navy in the world.
Guerre de course has two goals: First, disrupt the stronger enemy's commerce, and deny him the supplies needed to prosecute the war, feed his population, etc.
Second, disperse the stronger enemy's strength, to prevent him from achieving his strategic objectives. You might recognize some of these objectives as Torch, Avalanche, Husky, Neptune/Overlord, Dragoon and Tungsten.
Submarines are the ideal weapon early in the war for guerre de course in the high-threat environment of the North Atlantic. Armed merchant raiders can do the job distant from friendly shores. They can prey on commerce nearly every where else on the globe. By definition, as merchants they are big, roomy and can carry enough supplies for an extended cruise. While they rarely have to deal with destroyers, cruisers are their natural predators. The release valve for the pressure cruisers can put on armed merchant raiders is surface warship raiders. A warship is more dangerous than an armed merchant raider,, faster, better protected, better armed, etc.
The surface warship raids of the early war not only destroyed commerce, they caused a lot of disruption (especially Operation Berlin, but I digress). Disruption can be just as important as destruction. Perishable cargoes spoil, time sensitive cargoes miss their delivery dates.
Concentration of force is in direct contrast to the second goal. The RN will gladly trade the KM capital ship for capital ship, cruiser for cruiser (or panzarschiffe, as the case may be) and will STILL come out with enough capital ships to counter the Italians and Japanese.
My thoughts,