Um, they did.
Srsly. There are a lot of correspondences between Vedic and Nordic mythology, particularly in the most ancient parts of the creation myths.
For that matter, they call it "Indo-European" for a reason--all the European pagan traditions (well, barring non-IE peoples like the Basques and the Finns) stem from the same base. The Romans, for instance--don't look at their pantheon, sort of artificially reconstituted by giving Latin names to basically Greek gods--look to their legends about the history of the Roman Republic. They basically retold the ancient stories of the gods in humanized, civic form.
Now that might not have much to do with what Midas is trying to do here. But Toynbee speculated on the alternate history possibilities of the early Medieval Christian order collapsing completely between the hammer of Viking (and other pagan) invasions and the anvil of expanding Islam. IIRC he then faked right, having the Viking-dominated northlands convert to Christianity--but Celtic rite, surviving as the last forlorn outpost of Christiandom in Ireland. He felt that would be more compatible somehow with the newly Islamic southern Europe. What if no Christian rites survive anywhere in Europe, yet large parts of it never become Muslim either--you'd get paganism, in fact a paganism distantly branching from the same roots as Hinduism.
Mixed up pretty freely, as pagans tended to do (and so-called Great Religions as well--I'm looking at you, Mother Holy Roman Catholic Church!) with syncretic additions from everywhere and everyone they interacted with.
In addition to Nordic versions there were other Germanic variations, not to mention completely non-IE traditions like the Finnish and the Magyar.
it seems you and i have different understandings of the term "aryan". you are referring to indo-europeans, and yes there was an indo-european migration into europe. but the aryans i am speaking of were a single tribe who invaded india from persia, and it was documented, and created a single state. cultural heritage and political heritage are very different things (both would be needed).
everything else, i generally agree with, except for your quip about catholicism, but thats an argument for another day.