Manstein and von Bock are spinning in their graves. In general, Prussian officer corps is dying the second time after observing the mighty Bundeswehr on the march)
So, judging by this particular formation of Bundeswehr (and Bundesmarine) marching, there are issues, alright. Being sharp not only in the uniform but in posture, poise and movement--this is how average people recognize military people, even when they are not in uniform. Obviously, the cliché that army's worth is known not from the parades but battlefield performance is known to many, but even real parade is a reflection of the army, not to mention the fact that many who never attended any sport before entering military often encounter some minor or even significant issues with coordination--marching in formation addresses it. This is not what you see in this video.
So, you cannot judge the force on marching alone, but you MUST judge in conjunction with many other factors. Here is Belgian defense cadets (whatever that means) "marching":

