The Nazis had a curious infatuation with wacky super-advanced gadgets, see all the projects for advanced aircraft, jet aircraft (often multiple designs to do the same job), ultra complicated engines, radio control, even flying saucers for goodness' sake.
Most of these weren't even wanted by the services who were going to use them, and never got beyond the prototype stage, but they represented an ongoing drain on resources.
It's said (haven't got a ref to hand, but its an oft-repeated view) that the expenditure on the V-Weapons was comparable with the Manhattan Project, but it was too late to do anything to significantly affect the outcome, and strangely there was little enthusiasm for building the device to put on the top of the V2 which would turn it into a real game-changer. Dodgy Jewish science and all that.
Although the Allies had their share of wacky ideas, they were kept under control, so that the vast majority of design and production resources were devoted to churning out effective, good-enough designs. As Stalin said, "Quantity has a quality all of its own"
As for the reason for this blindspot, it might be down to romantic delusions of 1000-year Reichs bristling with Wagnerian weapons, but another factor might have been that they didn't have a formal system of reserved occupations, so that if you were a geeky, techy youngster you had a very real prospect of being sent to the Russian Front, no matter how good your abilities at science/engineering, etc, and no matter how lamentably un-military your character.
So the reason for some of this stuff may well have been down to kindly departmental heads putting in a good word to the authorities about young Hans' flying saucer ideas and saving him from a pointless fate at Stalingrad.