I am not quite sure how it is supposed to work. Will it simply add an hour when displaying dates and times or will it visibly change my timezone in my profile settings?

It just adds an extra hour to the times that are displayed. For Germany use GMT/UTC + 1 hour and tick the DST option. Make sure you select your country as being Germany, then when the clocks change in Germany so will the times.

FYI, the panel for Time Zones is not changing for DLST...All of my times zones are still off an hour. Any suggestions other than removed them all and redoing that panel?

That panel won't automatically adjust as you are not setting a country but rather how far ahead or behind GMT(UTC) the time is. So you will have to adjust them manually. Maybe not remove them all but edit them instead.

I've tried...seems i have to select actual time zones -1 on each. Maybe this can be pushed to support for a quick check box to push times automatically?