Even though Germany's chances of qualifying are very heavy, I still believe that Germany will be able to get through this ordeal and win the World Cup (as I predicted from the start). Germany must win with a score of more than 2 goals to be able to at least become runner-up in Group E with Spain (Germany should be able to get 5 points).
Spain is definitely targeting to win in the match against Japan later, but if Japan wins or draws from Spain and Germany vs Costa Rica ended in a draw, then my hopes for Germany have vanished.
This world cup is full of surprises, Europeans are playing for the first time in gulf that's why they are not able to perform well. Teams like KSA, Morroco are like playing in home conditions thats why they are getting good results by beating teams like Belgium and Argentina. I am not placing any bet on who will be the winner because of too many upsets.
Is it common knowledge that the location of the world cup affects players and teams? Like the region of the host country is better for the country of that region. I am genuinely wondering. Personally, I don't expect such effect on the players and teams. They are the most elite players of the world, they shouldn't care where the games are being held. The surprise results of this world cup just happens because times change and football changes as well. Germany might have had a great reputation and titles but they can have a bad tournament or just not as good as before simply. I can't comprehend the home conditions that you mentioned. These are professional elite athletes. They will not be affected.
My prediction for the Final is that France most probably will be there. Second team is quite hard to predict. Biggest candidate seems like Brazil. But very hard to tell.