The Germans completely underestimated the British time and time again at many critical points and it ultimately cost them the war.
I generally agree. But in the particular case of radar technology, it seems that the Germans overestimated the British -- reckoning that they could not be using the rather dated 12 m wavelength technology for radar, and hence assuming it was something else.
There was nothing really dated about using 12m. The home chain worked well for its time. If you see powerful radio pulses, and you don't see that as either a detector or a navigation system there's something wrong with you. This story about the Germans makes no sense.
German technologies at the time were set up for the offensive, they had radar, but it was initially utilised for guidance purposes.
Britain's chain home system did have the advantage of range.
The Germans saw no great need for it in a defensive role having the knowledge of Britain's lack of long range bomber capabilities in the later 1930s.
The mistake the Germans made was the London blitz. Had they maintained a systematic offensive against solely military targets their early advantage and goal of overrunning Britain by the end of 1942 would have been achievable.
One of the saddest mistakes by order of Winston Churchill was the assumption that the Germans didn't know Britain's had radar, so he didn't want to give them any suspicion that there was any kind of early warning. He refused the RAF permission to engage bombers that attacked Coventry until the beginning of the strike , a decision killing countless more civilians and destroying a great deal of essential industry for no reason.
What a hero.