As far as I am aware, Germany did use battlecruisers, but only in WWI. They used the term grossekreuzer, and these were ships with 8-12 battleship calibre guns and displacements equal to the largest German battleships, similar to the battlecruisers of the Royal Navy that they faced off against. They typically had calibres smaller than the Royal Navy battlecruisers they were up against, but they had thicker armour to compensate and so were far more survivable in fleet actions.
Panzerschiffe refers to two very different categories of ship. The panzerschiffe you mention, the pocket battleships, were basically upgunned heavy cruisers that sacrificed a few knots of speed in exchange for their 28cm main battery. It was just the German navy making the most of what the treaties allowed them, as they were allowed a few self-defence ships of up to 10,000 tonnes displacement so they set out to create the most powerful ship they could within that limit. This is wildly different to pre-WWI era panzerschiffe, which correspond to the armoured cruisers that were used in nearly all navies in the predreadnought era. Armoured cruisers were to the predreadnoughts what the battlecruisers were to the dreadnoughts, being similar in size and armament to the predreadnought battleships but sacrificing a bit of armour in exchange for greater speed, with their sizes being limited only by cost and shipbuilding expertise.
The Bismarcks were indeed proper fast battleships of the time, but most of the documentation of the Scharnhorsts shows them as being officially classed as battleships (I have heard that some official German documents called them "Kleine Schlachtschiffe", or "small battleship"). It was only a couple of Royal Navy documents at the time that referred to them as battlecruisers thanks to their very high speeds compared to their inventory of WWI era battleships, although it turned out in practice that the high speeds were due to advances in engine technology and that was to be pretty much the standard speed for a fast battleship at the time once the battleship holiday of the London Naval Treaty expired (guess what the inspiration for the London Treaty that Denton Patreus is breaking is?). The whole idea of the battlecruiser had pretty much died out during the interwar period, as a combination of improvements to engine technology making battleships faster and the difficulties in making ships go much faster than 30 knots meant that the concepts of the battleship and the battlecruiser pretty much merged by the second world war.
Ok.
Your Jumbling up a few things there. But well not Surprising this aint exactly easy since it stems from Translation Errors which even Wikipedia has trouble keeping sorted. (Wikipedia actually is mentioning this correctly in most parts. By simply Cross Referencing the German Words and the Ships itself rather than only mnetioning the Class)
Germany has no Class which is called "Große Kreuzer"
This is another Class which is actually taken over from the Americans.
The Americans had the so called -LC- "Large Cruiser" Class
The Alaska for example is that one.
But Germany never had this Class.
Germany had here in WW1 again a Different Class.
Which was called "Panzerkreuzer" (Armorcruiser)
This however should not be mistaken for a "Schlachtkreuzer" (Battlecruiser)
An Panzerkreuzer from WW1 (which thanks to the US Classification is nowdays usually called an "Large Cruiser" (Großer Kreuzer) was an Oversized Heavy Cruiser which had both. Increased Armor AND Increased Firepower
Unlike the actual "Large Cruiser" Class the USA had in early WW2 which had only Increased Firepower but still used Heavy Cruiser Armor
This is not Surprising.
Because Interestingly.
"Panzerschiff" and "Panzerkreuzer"
Are both Translated as "Armored Cruiser" when you check em in English.
But they are different.
Panzerschiff would be "Armored Ship"
While Panzerkreuzer indeed would be "Armored Cruiser"
All of which were later simply called Heavy Cruisers.
But there is Distinct Differences.
Large Cruiser (Großer Kreuzer) = An Oversized Cruiser which uses Battleships Weaponry
Armored Cruiser (Panzerkreuzer) = An Oversized Cruiser which uses Weaponry and Armor closer to a Battleship but both not entirely up to Battleship level.
Armored Ship (Panzerschiff) = An Oversized Cruiser which uses Less Guns but an Larger Calibre of Guns.
US/UK Class Battlecruiser (Schlachtkreuzer) = An Battleship which Sacrifices Armor for more Speed
German Class Fast Battleship (Schnelles Schlachtschiff) = An Battleship which Sacrifices Firepower for more Speed.
Japanese Class Fast Battleship (Schnelles Schlachtschiff) = An Battleship which Sacrifices a mix of Firepower and Armor for more Speed
And yes thats correct.
To be Precise.
Both the Bismarck and the Scharnhorst were Classified as "Fast Battleships" The Term "Battlecruiser" was not used in German
Germans also made no Distinct Difference between Fast and Normal Battleships. This is only an Addition.
The Scharnhorst was an Battleships which Sacrificed some Firepower for Speed. Hence it was a Fast Battleship. The Fast is not part of the Class. Its simply added as an Description for this class.
This Topic is unfortunately Skewered by Translation Issues.
One Problem being that the German Translation for Ironclad also comes out to Panzerschiff which makes things even worse. Because even on Wikipedia you have to check the "Deutschland Class" itself to actually find the Term.
Its a Mess to be Honest. So I am not Surprised that anyone not actually from Germany would see through this.
The Problem to begin with. Is that each nation had their own Classifications and their own Ideas of this Classification.
A German Battleship Followed an entirely Different Doctrine than an British one for example.
Most German Capital Ships. Were Significantly Better Armored than the British Ships. But had considerably Smaller Guns.