ZD,
Your summation reflects only your biased take on the topic.
Most people who associate some form of kedusha to Yiddish is because it was a language specific for Jews, and is used as לא שינו את לשונם. It is not לשון קודש though.
Why people talk about “der alte heim” is not because they think life was glorious, rather because of their מסורה and minhagim that often go back centuries. Which is the prime basis of yiddishkeit, as demonstrated in the first mishna in אבות.
Now If you think that Mesorah is defined as being stuck in the ghetto, that is your loss.