I don't know about you, but I understand why a huge, enormous puppy would be afraid of a tiny kitten. I mean, yes, you'd think it would make more sense for the opposite to be true, which it most times is, but I totally understand why the dog would be afraid of the kitten. Us, cat people, know exactly how fierce even the smallest kittens can be, and the dog can clearly sense that.
The German shepherd is excited, of course it is, but it is also adorably intimidated, barking and sniffing, and generally trying to asses the kitten's level of fierce. And though we can't explain why, we think these two will be BFFs in the future.