It's actually fairly astute. The reason "expanding Germany into the territory of neighboring countries we don't like" was so popular to Germans was because Germany (then and probably now) is fairly dense. One of my friends studied in Germany. One of his professors said something like, "Germany has never had enough land. We tried expanding once but it didn't work out so well."

It's easy to imagine the Netherlands having the same problem. Of course, emigrating to a less dense country is an easier solution.

You're right, it was probably unnecessary.

It's a pity though, cause the metaphorical meaning of living "room" is precisely what I meant.