+10. While Waffen-SS units certainly did receive weapons from the SS depot and camp systems, the vast majority of their arms came from Army stocks since the Waffen-SS being under de facto Army command meant integration with the Army supply system. Himmler hated this since the Army was the main political rival of his SS. He dreamed of supplanting the Wehrmacht as the primary political force in Germany, and "step one" was a separate arms production capability. Acquiring captured and antiquated arms (neither of which the army wanted) was an early way of trying to get around the Wehrmacht's monopoly in 1940-1941.
I don't think all of this is true. The efforts of Himmler and the SS to divorce themselves from the Army system were hardly successful, but I don't think you can call them a failure. At all of the camps, hundreds of thousands of prisoners were put to work in SS-run industries in and around the camps, or were farmed out to other arms industries nearby or to various other units (Reichsbahn, etc.). The system produced tons of desperately needed war material and freed up Germans for front service.
I also wouldn't say that the SS or any Nazi "hated business". The Fascist system was one of "cooperation". Property was left nominally private, but was actually heavily controlled and regulated by the state. The Nazis and the SS liked big business just fine. As long as it served the state. Big businesses liked the Nazis just fine as long as they were favored for contracts and protected from smaller rivals. Not all that different from the US.
IMHO, the system was ultimately unsuccessful because it was "crowded out" by the Army, not incompetence in the SS. The Army's needs (and budget) were massive and consequently commanded most of the productive capacity and resources. The SS was left with the scraps, and small contracts here and there. I do not think it is a coincidence that the Steyr contract guns appear in 1943 and 1944 when the SS was at its height in both size and power.
The two books you MUST read to understand National Socialist economics: "Wages of Destruction" by Adam Tooze (2007) and "The Vampire Economy" by Gunter Reimann (1939) (
http://mises.org/books/vampireeconomy.pdf). Tooze dispels most of the myths surrounding the National Socialist state (the economic miracle of the 30's, etc.), taking a particular interest in demolishing Speers' post-war rehabilitation. I wouldn't believe anything written by Speer.