In addition to being abhorrent and detestable, this policy would make the Germans destitute, and increase their desire to get rid of the treaty, and get revenge on the nations that imposed the misery and poverty on them. This would make for a population that was ripe for a leader to rally them to his cause, no matter how brutal, so long as it involved revenge and getting rid of the injustice of the Treaty of Versailles. And sure enough in the 1930s, Hitler came along, and did exactly that.
While the emotions that led to this Treaty, and the desire for Germany to pay a price for the war, are justifiable, the treaty went beyond the point of justifiability. And instead of being an effective reprimand, to hopefully stop further militancy on Germany's part, it was too harsh and led to the Germans wanting revenge. This seems similar to previous revolutions. For instance the American Revolution. The American Revolution was caused by harsh policies, that the colonists had no say in. These policies led to resentment, which ultimately led to war. Likewise the harsh policies forced on Germany by the treaty of Versailles, also led to resentment, and ultimately war.