Mate, frankly, where the hell do you think the allied industry was located? Do you think that, unlike those vile Nazis, anyone was carefully building their factories 2 miles from the city limit, or WTH?
Have you checked out for example where the Chrysler arsenal in Michigan that made M3 and M4 tanks was located, for example? Hint, it's better known as the "Detroit Arsenal (Warren, Michigan)", because it's smack dab in Warren, the biggest suburb of Detroit. And that's a factory expressly built for making tanks. The ones that were converted mid-war, nobody moved outside the city they were in.
So, please. I'm not defending the Nazis, but it's silly to pretend it's some Nazi grand plot to hide behind civilians. EVERYONE placed their factories close to where they expected their workers to live. Chiefly because you couldn't expect everyone to have a car in the 30's like you have now, public transportation sucked, etc. The whole of western Europe didn't have NEARLY enough fuel for any the of that. And a lot of factories had even been built long before the 30's.
And in fact when the Nazis did built a factory from the ground up -- as in, actually built from a government initiative, as opposed to wherever the hell Krupp or Opel happened to have built their private factories -- look up Volkswagen. It was actually built a couple of miles from the nearby town of Fallersleben. Mostly because the town didn't want to pay a part of the costs, mind you. But still, one way or another, is was actually built by the NAZIS away from populated areas. The later town of Wolfsburg grew around the factory, rather than the factory being built in the middle of a town as some evil Nazi plot.