It is possible, but think what a blow that might have been to the war effort anyway. Not that people were following his inspiration (more provoked forward by his terror), but it would be a huge blow to whatever prestige he had if he retreated when in 1941 all the Russians were being ordered to do is hold on stubbornly to all ground. As Jhessail said, perhaps its most critical role was as a communications hub, especially considering its central location (its loss might not only have crippled the center of the front but also isolated the north and south from each other).
As for the German Staff Officers, I am sure there is an element of both points you suggest Jhessail...that of passing the buck (human nature to do so) and also to distance themselves from that horrible regime. That being said, I think that is a minor part compared to the part Hitler did play in it. I was just reading recently about the push towards Leningrad in '41 and how in the Baltic states several times Hitler personally ordered that certain mechanized units hold up their advance for the infantry to catch up, thereby losing opportunities to really make a major breakthrough (and delaying the advance for days and in some cases a week or two, which in hindsight we know would have been very important for taking Moscow).
However, generally speaking the German Staff Officers were indeed the best (in my opinion of course, but I know it is widely accepted by many too), both due to their thorough and pragmatic training but also their ability to make mistakes and not be sacked. Russia was notorious for sacking and often imprisoning or executing officers who made mistakes, especially in '41 and '42. The United States was not much better, typical of our media culture here we often have to find simplistic causes for a failure and typically this is a scapegoat leader (still seen today both with generals, CEO's, and Presidents too). Although not as bad, the British also had some of this as well. The Germans, on the other hand, were apt to forgive mistakes if they were not a result of negligence, which would allow the general who would have been sacked in another country to learn from their mistakes and be better for it.
Btw Jhessail, that picture you posted freaked me out a little. I can't decide if it is the spawn of the Joker or Cheshire Cat...or maybe both....