The problem with a world war is that the only way to properly end it is by turning the losing side into a smouldering pile of rubble. Otherwise you end up fighting it all over again some while down the road. History is pretty specific in this respect. It's a bit like cleaning a septic tank: you can do it poorly or thoroughly; either way, you'll end up covered in shit. If you do it poorly though, you'll have to end up covered in shit again pretty soon.
Winning thoroughly and unleashing additional destruction and misery on civilians are two different things. All you are proposing is #2.
It doesn't demonstrate that the Germans are beaten, it demonstrates that the Entente doesn't have even a toehold on the moral high ground.
No point forfeiting that for something that will leave more reasons for Germany to want revenge than the OTL treaty.
Odd, I remember that starting 1916 Ludendorff and Hindenburg dropped all pretense of civilian oversight to military matters (which didn't really exist anyway) and assumed direct control of the country.
What exact authority did they wield?
http://www.bbc.co.uk/history/historic_figures/hindenburg_paul_von.shtml
"Credit for Ludendorff's invasion of Russia was misdirected to Hindenburg, who was appointed field marshal and commander of all German land forces, with Ludendorff at his side. Hindenburg oversaw the mobilisation of the whole German state for war, and became immensely popular throughout the country. Kaiser Wilhelm II was sidelined."
http://www.britannica.com/EBchecked/topic/266224/Paul-von-Hindenburg
"Hindenburg was called back into service in August 1914 to be the nominal superior of Maj. Gen.
Erich Ludendorff. Acclaimed as one of the army’s best strategists, Ludendorff was to drive a Russian invasion force from
East Prussia. For this achievement, the rocklike Hindenburg, rather than Ludendorff, received the nation’s applause. Soon Hindenburg’s standing overshadowed that of Emperor William II. He was promoted to the rank of field marshal, and in 1916 the Emperor was pressured into giving him command of all German land forces, with Ludendorff his co-responsible chief aide. Unable to win the war on land, the duo tried starving Britain into surrender by
unrestricted submarine warfare, thus drawing the
United States into the war and causing Germany’s ultimate defeat. When they conceded defeat, Hindenburg let Ludendorff take the blame."
Neither mentions him taking control of the government. The war effort, but not the government.
So if you have a source giving more and/or different information I would appreciate seeing it.