This is a debate I have read in several forums. Was the Hochseeflotte a good option for Germany? I have read many arguments for and against. I will try to summarize a few.
German naval expansion caused an Anglo-German arms race and perhaps push the United Kingdom to France. Germany wanted to have it's own place in the sun, and for the Kaiser a fleet was indispensable. Naval investment was popular in Germany, as the Navy was a "German" institution (not Prussian nor Bavarian), which placed less importance on the officers origins and class. The ships were a showcase of Germany's latest technology.
The issue is that Germany was unlikely to catch up with the UK as the Army also needed investment. Also, in 1912, the UK signed a joint defense agreement with France that allowed the Royal Navy to concentrate in the North Sea while the French defended the Mediterranean.
When WW1 started the German fleet was not comparable to the Royal Navy in size. It could not prevent the blockade. Supporters of the Hochseeflotte claimed that it blocked the Baltic as a supply route to Russia. It also helped later in the war against the Russian fleet. The investment in the ships was unlikely to have been used in the Army because Germany did not want to raise tensions.
Finally, the UK would have gone to war with Germany anyway because Schlieffen Plan included the invasion of Belgium, a neutral country whose sovereignty was guaranteed by the UK.