More than that, I suspect it was lighter, mechanically simpler, easier to maintain and more compact, which is probably the real reason it was adopted. If you look at U-boat designs, space and weight were very much at a premium in them. The German design philosophy was very much performance-first.
Also, I don't think anyone seriously planned for loss of electrical power. A U-boat losing electrical power would have bigger things to worry about than steering, namely the fact that it without electric power it had no propulsion and no pumps. In that scenario it would be dead long before steering became a problem.
In any case, I believe it still had a mechanical backup. Same for the dive planes - their normal controls were electric with a mechanical backup.
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There are only forty people in the world and five of them are hamburgers.
-Don Van Vliet (aka Captain Beefheart)
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