I'm actually not sure how to feel about this. However, it would have sent a bad signal to convict the man.
I don't care that he's 93 years old, or that he was sixteen/seventeen at the time.
Nazis should get the Death Penalty. If Germany wasn't willing to execute him themselves, then they should have extradited him to Israel so they could do it.
Article 1 of the Grundgesetz
"Die Würde des Menschen ist unantastbar. Sie zu achten und zu schützen ist Verpflichtung aller staatlichen Gewalt"
So I am pretty sure executions are not lawfully compatible with the 1st Article of the constitution.
The Grundgesetz further explicitly states that the death penalty is abolished (
Article 102: Die Todesstrafe ist abgeschafft.)