Importance of St. Vith?

Those SS Panzer Divisions were fantastic in defensive or short ranged assault actions- where their training, fanaticism of their NCO nucleus, and defensive/counterattack experience would be magnified..but it was the Heer Panzer divisions that had the traditional officers and NCOs that had the skillsets to managing their men and assets for long-range offensive action.

These SS Panzer Divisions were formed mainly in mid-war when the fortunes were turning for the Germans. Heer Panzer divisions like 2nd spearheaded Poland, France, and Barbarrossa.

 

I apologize for the necromancy, but I have a couple of questions.

Would I be right say that the greatest danger in the loss of St. Vith would be a potenital link-up of the Fifth and Sixth Panzer Armies? If the Germans took St. Vith earlier, it looks likely to me that the Sixth Panzer could extricate itself from Elsenborn and redeploy at St. Vith through the LXVI Corps, cross the Salm. and roll up Ridgeway's XVIII Abn Corps which was spread thin along the East-West axis from its eastern flank.

What was St. Vith to the German plan? If St. Vith was key to the road net exiting the Schnee Eifel (as it is), then maybe LVIII Pz. Corps should have been there instead of the infantry XLVI Corps? Were the Germans expecting St. Vith to be a logistics base to support the Fifth & Sixth Panzer Armies, or a tactical oppertunity to be exploited when and if there had been a breakthrough?