It would be better if they could just reliably block the account from reaching German users only, while other users would continue reading the tweets. It, of course, is impossible unless Germany implements a country-wide firewall, the way China did.

I don't think it's likely, though. The point of actions like this is not to strictly eliminate any last vestige of hate speech. It is to send a message, so that other would-be-satirists could reconsider starting an account that breaks the law, and that other international companies which deal with UGC knew what to expect, and took preventive measures.