That's correct- the Germans had threatened that they'd level Amsterdam, The Hague, Utrecht and possibly every last village until the Dutch surrendered. What's mindboggling is that you think a "Do yourself a favour and surrender, or else" strategy is somehow justified.
Next thing you're going to argue that random executions are justified if they succeed in deterring would-be rebels.
And yeah, occupying the Neth's was pretty useless as far as I know. Belgium was on the way around the Maginot line, but I never figured out why Hitler thought that taking the Netherlands was necessary or even desirable. The nazi's loved to preach their nonsense about a pan-germanic master race, but that doesn't explain why they let the Swedes and the Swiss get away with their quasi-neutrality.
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