… plus he is baffled that there is somebody even more unscrupulous than himself.

To Baron, he was never useful in the first place. Doktor was always intended to replace him, and Baron doesn’t like being replaced.
He’d be a terrible ex-girlfriend.

How I think he planned it to appear:
Being to late to save the Doctor. But in time to wipe out the Specialists.
He knew the attack would come, thanks to Geist. And instead of warning them, he choose this as the perfect opportunity to eliminate the Doctor and defeat the Specialists. Let’s see if he manages 50% of what he set out.

I had this sudden thought, what if the powers that the Ubers have can be passed on to different people at will? As in, while this Schnell is dead the Baron will just find another person and create a new Schnell? We have seen that the Baron can take away powers from the “Witch”, what if he could give them to somebody else?

Unless they have a way of bringing back Schnell I think it might indeed be difficult to explain to the Fuhrer how did one of the “Ubers” die if they all came too late.

It’s magic-or as close as it gets to magic-so things like physics need not apply.

Probably won’t happen, sadly, but I really want the Doktor to be a bigger threat than just the guy who made Brute and Aryan. Turning himself into monster in desperation is a way I can see to do that.