I hate my state's (and country's maybe, idk) way of teaching history. It seems like 80% of it is WWII and Holocaust, and the other 20% is US-based. There's such little on World History, and though my school has a world history class, it's not required (which is ridiculous, especially since 2-years of US History IS required).
Anyway, it seems Wilson's propaganda worked a bit too much indeed. A lot of people I know are ignorant of Germans beyond just WWII. A lot of people I know don't even know what WWI was about.
To answer your question, yes, Germans are definitely allowed to be proud of their nationality. They have rich history throughout all of history, even during WWII. Germany, especially in the US (and I assume somewhat in UK?), is depicted still as the "Beast of Berlin". A bit ridiculous indeed.
Be proud of your nationality, mate, it's a great one!
edit ps im not fascist pls no ban liek tav