They looked much better in this Euro than they have in a while, probably since 2014. They probably played Spain tougher than anyone else in the tournament, although they were playing at home and pretty fortunate to tie it up in the dying seconds of regulation.
Regarding the handball, I think it's been pretty well established that it was called correctly, or at least according to the guidelines that UEFA gave all the refs when the tournament started. Also, it's been reported that there was a probable German offside on the play, so the penalty probably wouldn't have been given even if it were a handball.