My cofounder's wife, during a parents together at school, was "advised" by some of the mothers to not "hang around those" mothers because they're stranger folk. Turns out, they lived 1.5 miles away in the next village.
well, if you ignore the current country borders then "German" would encompass a large portion of Switzerland and the Netherlands. So, with that assumption, I would be surprised if Italian had more dialects than German.
Though there's typically a common dialect variant everybody speaks, usually the one spoken by the largest city in the region.
E.g. every middle-franconian understands Nuremberg franconian dialect and is able to talk in a way they would understand.