Deutsche Bahn – “This is how the company is meeting the changing challenges posed by the market”

This quote taken from the DB company profile (http://www.bahn.com/i/view/GBR/en/about/overview/company_profile.shtml) seemed like an interesting self-evaluation to me, considering the following situation;

So I’ve taken the train to Munich this week, I was quite lucky on the way there, apart from a 15 minute delay due to damage on the rail that was hit by a lightning and a disfunctioning  AC in one of the wagons (I was glad there was thunder and rain outside) nothing else happened. Waiting for my train to arrive,  speaker announcements  communicated the usual  “Der ICE nach Prag fährt aus technischen Problemen ohne Speisewagen. Wir bitten um Ihr Verständnis“, or “Der Zug nach Eberswalde trifft vorraussichtlich wenige Minuten später ein, wir bitten um Ihr Verständnis.“, forecasting delays and other technical disturbances, followed by  a kind request to accept the apologies. I was quite certain the next announcement would reveal my train was going to be delayed too, but it wasn’t.  It took me around seven hours to arrive in Munich, I got to see all villages of Thuringia on the way, cars passing by as the train was probably only going around 70 km/h (normally going up to 230 km/h ).
How come the railroad connection between two of the biggest cities in Germany  is so terribly slow? Wouldn’t it be much more efficient to invest the billions of money they are planning to spend on ‘Stuttgart 21’ on an improved connection between Germany’s major cities?