Not very good examples:
--When someone falls in front of your house it is your responsibility (not an 'act of god' as it says in english law) - you can get sued for that.
--As an adult you can't ride on the sidewalks - if you want to, that particular piece of sidewalk has to be marked as a bicycle path (which makes sense considering the high difference in speed between pedestrians and cyclists). In reality nobody cares about bicycle paths so you get an obstacle course of trash cans, cars (and their doors) and pedestrians...
Germany has something like the absolute best set of bicycle lanes of any country in the world, with the possible exception of the low countries. That you are still unhappy about the way that people treat them is a very strong indication of my point ;-) Come look at the bike lanes in Spain, France, the US or the UK, instead.
It seems like the OP is from Scotland, where snow rarely falls and when it does, it doesn't stick around. I wonder if snow removal laws are more a matter of climate than culture.
I've found more strong family and friendship units in Germany than in the UK, Australia or the US. I've also found that people are less mobile within Germany than other places, perhaps in part due to the cost of changing accommodation - although that may be a European thing, as opposed to just a German thing.
Of course, these are all simple anecdotes and worth what you paid for them. My feelings about Germany are that it's a great country, and one I like very much. But it does have a very distinct character (similar to southern England in some senses!) and from that, the outrage about politicians faking academic titles is not a surprise.
Other ways in which Germans guard their societal structure:
-- highly regulated Sunday opening hours, even in big cities, ostensibly to protect low status workers.
-- strong rules regarding jay walking; it's the only country where other pedestrians got upset with me for crossing the street incorrectly.
-- strict adherence to rules and procedures in aspects of life that most cultures don't care about (clear your sidewalk of snow and ride your bicycle only on the correct side of the sidewalk, for example).
-- strict adherence to a close family model that promotes appropriate education, shared meals and shared community endeavours.
All these things make up a strong societal structure (if a little inflexible). I believe that there is a national desire for a straightforward, trustworthy communal structure. The 'obsession with titles' is simply a facet of the desire for a strong shared community which can act as a basis for a productive society. If people assume titles that they do not deserve then they reduce the quality of societal markers, make communal life more difficult and thus reduce productivity and progress. Add that to the somewhat natural tendency to tear apart any person of previously high societal status, and you have the current climate of Germans checking all advanced degrees (and to an extent, the British checking all the expenses claims of their own politicians).