I don't know anything about the non-NHL players, but an offense with Hecht and Sturm, both decent second line 50 point NHLers buoyed by an Ehrhoff who's having a career year doesn't seem bad on paper at all. Plus they also have Seidenberg and Schubert possibly, both decent D-men and Marcel Goc looks like he's having his best season so far. Greiss looks to be a decent backup to Nabokov and would probably see a lot more ice time on a team that isn't so stacked.
So on paper, they're certainly no worse than Belarus, and they definitely look stronger than Latvia and Norway. With 3 of their NHLers doubtful for the Olympics, I fully expect Germany to give Belarus a run for their money, and possibly even surprise the Finns and the Swedes. Given Belarus' injuries, out of the 5 teams that are seen as outside looking in (Switzerland, Belarus, Germany, Latvia, Norway) Germany looks to be amongst the strongest of them, behind the Swiss.
With that said I don't see how group C is any "weaker" than group A. Canada & USA is roughly parallel to Sweden and Finland, Swiss and Norway similar to Germany and Belarus. Both groups are equally balanced top to bottom. I would say B has the toughest group with three "true" medal contenders. Latvia IMO is a lamb being led to slaughter. They're in a position similar to North Korea in the world cup (being drawn with Brazil, Portugal & Ivory Coast)