Bismarck did indeed very much for the integration. As book I can remember having heard about : Gold und Eisen, Bismarck und sein Bankier Bleichröder by Fritz Stern. I don't know if there is an English version. Also I never read this book. Although I might order that soon...
Anyway: The emancipation of the Jews was already starting with the immigration of Jews under Frederic the Great and also perhaps his father. The philosoph Moses Mendelssohn was celebrating Frederic for his liberalism (of course in terms of the 18th century!). However it lasted indeed until the reforms of 1812 when the Jews got finally the whole citizenship. But it lasted even longer to become really equal. But that had nothing to do with Germany per se as in other states the situation was hardly much better.
The situation became nearly normal in the middle of the 19th century. But then came the orthodox Jews from Russia. Most wanted only to go to America, but some also stayed. For the population in that days they looked, erm, ridiculous with their hairs and the dark clothes. In that time anti semitic jokes were becoming quiete popular. But nothing of the caliber of the Nazis. Also Bismarck, who was in no way anti semitic, should have told them. However even the assimilated German Jews were accepting these jokes and partially did the same. They simply could not understand the orthodox and their behaviour as well. They also not accepted their life style and rigid following of the religious laws! Even today the Jewish communities have difficulties between the orthodox Jews and the Jews, who are originally German.
The situation with the non Jewish Germans was normal until Hitler took the power. His party became a major factor despite his antisemitism. However 165.000 Germans of Jewish origin or believe were murdered in the Holocaust. After the war the Jewish life in Germany was rebuilt but many were dead or fled into other countries. But many came also back. When the Wall fell Germany accepted Jewish refugees from Russia. Today (2006) 108.000 Germans are of Jewish belief. That means they are active in their communities. Not included the ones who are not member any more.
Of course that is only a short overview...
Adler