>>18140196 (OP)
If I were fighting a two-front war against a coalition of the most prominent global powers that were present in the region I’d also prioritize reaching Azerbaijani oil fields before I try to conquer a mountainous backwater with nothing of any strategic value.
He did want the Balkans to some extent in the very long term, he wanted Germany to essentially control the length of the Danube and have every state touching the river be either a puppet or a staunch ally that would recognize their primacy.
Hitler wanted to move all Danube Swabians to Banat and Vojvodina and create a German state out of it that would be separate from the rest of the Reich geographically. It was most commonly called Prinz-Eugen Gau or Prinz Eugen Statdt (literally Prince Eugene State) but was also just called Banat or Swabia. In some discussions it’s believed it would also take control of Southern Transylvania to include the Transylvanian Saxons, but alternatively the Transylvanians would just be moved slightly West.