If Germany were to leave and revert to the DM, they would have the same problems as the Swiss - the DM would be far to strong to sustain an export driven economy. Their banks would also face the prospect of defaults and further write-downs from some or all of the PIIGS.
With regard to EUR/USD price, I agree it does look as if the euro will fall early next week (possibly as low as 3040-50 range).... it will be interesting to see the volumes and PA on Tuesday. The vols on thu/fri were relatively low.
If the US payroll numbers next week are disappointing then I think we could see a sharp retracement - again it will be very interesting to keep an eye on volumes and daily spreads next week....
just my two cents,
patience is a virtue