The squares are there, as Mike has just scaled down his 1/35 and 1/48 designs for the pattern. One thing I have noticed is that the smaller the scale some things (lines) do get a little lost in the pattern. However, if you make the lines deeper than you get a weird looking pattern that doesn't look right.
Here is a link to a photo of Mike's wonderful 1/48 Alkett zim pattern, and the squares are noticeable.
I will pass on the info to Mike to see what he can do. Thanks so much for your feedback, as we really do want to get this right.
Speaking of which, I was talking to Mike last night (8 hr time difference) and he tells me that the Alkett and MiAG patterns for the Dragon Stug III should be ready for release sometime next week, ahead of the Panther (Mike is still waiting to receive some model parts I posted him to finish the Revell kit off). So once Mike has played around a bit more with the pattern we will all be able to recreate scale zimmerit for our Stugs!