Germany's war materiel problem was that the USSR and the US were producing many times more of everything, more efficiently, and both had access to raw materials.
Significant differences in the approach to production that were evident from the start meant that the US and the USSR would emerge victorious. An example is tank production - the T-34 turned out to be a remarkable tank both in terms of military capability and in its production. The Soviets kept to probably two basic designs for the T-34, and production, spare parts, repair and factory organisation were non-issues. It also ran on diesel, less flammable than petrol. By contrast, Germany kept on tinkering with its weapons and tanks, unable to resist the temptation of technological sophistication and missing the point of sensible mass production objectives. German domestic consumption sucked needed steel from the military. In the USSR and in the US, resources were directed into military production.
Germany was doomed after winter 1941-1942, when the invasion of the USSR stalled and thus failed. The German war machine and German military production were designed for short campaigns in manageable theatres. Barbarossa was neither short nor manageable. Both the US and USSR were far better equipped to conduct war on the vast scale that Germany embarked on. They both enjoyed economies of scale that Germany didn't. Air bombardment had been so successful by 1942 that hardly any German military equipment was produced from start to finish in the same factory or even in the same city. This wasn't a problem for the US or the USSR.
The USSR was also throwing millions of men with millions of simple, easily produced, and easily repaired tanks and artillery equipment against the superbly crafted German artillery and tanks complete with all sorts of special bells and whistles. There was nothing Germany could do about the westward approach of the decently equipped and numerically massively superior Red Army. Shambolic resistance in places like Breslau just tied up weapons and seasoned combatants and made resistance close to Berlin that much harder. The refusal to evacuate Army Group Kurland meant that an entire army group didn't even get news of the German surrender until 10 May because they were held dormant by encircling Soviet forces.
The Survey report committee was indeed repelled by the use of the A Bomb, but not by the use of conventional weapons to set alight over 60 Japanese cities and essentially starve Japan into submission. Unlike Germany, Japan did not have natural resources and once the sea blockade was established, starvation and the cessation of military production would have followed - lost planes could not have been replaced, nor could navel losses. A few destroyed airfields and that would have been the end. Starvation was already looming thanks to bombing of railways. Despite the stockpiling of fuel, Japan was scuppered once its navy was destroyed in Tokyo Bay. Japan had since 1932 used the resources and slave labour of Manchukuo (which as an industrial slave state). This was all over once Manchukuo fell to the Soviets. Together with the sea blockade, the end was inevitable once Manchukuo was lost and it might have come even sooner through gradual asphyxiation than the November home islands campaign the US had pencilled in. (The US was not unduly worried about opposition on the ground or an unruly population. As long as the position of the Emperor was ring fenced, they hoped the Japanese would accept Allied-American rule).
The recovery would have happened no matter how decimated Japan might have been, and no matter what the cost to the US because as in Germany recovery was in the US' strategic interests. In addition, the Japanese had learned much from their experiment in rapid industrialisation in Manchukuo, with the combination of central planning and capitalist investment. West Germany also had the experience of the wehrstaat of the 30s to draw on, as well as a highly developed capitalist culture on top of the Marshall Plan.
The influence of the Imperial family turned the tide when it came to the decision to surrender, and the Emperor was under the influence of a small coterie that had decided it was not in Japan's interests to fight on. From all accounts of the last days before the surrender, it appears that virtually every one of the key players was playing a game of chicken. (It may well be of course that everyone involved prefers to be remembered for posterity as convinced of the need for peace but for some reason reticent at most meetings). The exception was the hardliner army group that orchestrated the coup attempt. The Soviet declaration of war remains the catalyst that ended the inertia. Assuming they really were mostly all good readers of writing on the wall, they all knew the end was inevitable, but they still all waited in vain for the Soviet response to their feelers about negotiating better terms than the unconditional surrender required under the Potsdam statement.
Soviet neutrality was the linch-pin of Japanese strategy in the final months. It had been planned for and planned around, with the ultimate end of securing better terms than Potsdam by means of Soviet intercession. When all the plans came to nought overnight, the situation acquired a completely different complexion. The political consequences of Soviet entry were much more important than the military effects.
Paradoxically, the A bomb was so surprising that it could not register initially. As well as appearing literally out of the blue, it had the effect of yet another night of bombing by the USAF, and it had not affected Tokyo.