Replying on behalf of the speaker -
I would say ‘yes’ to both.
As I said, many universities are closing their applications as there are only two weeks for the deadline, and they have received too many applications already. We would encourage you to apply anyway because even if the course is online and you are going for a consecutive program, you are going to get a degree from an international university at a very nominal cost where you don’t even have to pay the living expenses. The cost is minimal and the quality and the value of the education is tremendous. An online semester will be equally valuable.
Yes, it is possible that it will increase the competition as a lot of students who are planning to attend in-person classes will be deferring their admits. And if their deferrals are accepted by the university then some of the seats are already filled up. Germany anyway has a lot of clauses - so if there are fewer seats, applications will also be restricted. There will be significant competition, not just in Germany but everywhere and in just about every sector. It will be a rat race everywhere as the economies try to recover.