This level of "quality control" is everywhere in the German society.
For the titles themselves, this comes from the general German culture, I heavily recommend "The German Genius" by Peter Watson to understand it a bit more:
http://www.nytimes.com/2010/07/18/books/review/Ladd-t.html?p...
http://www.amazon.de/German-Genius-Renaissance-Scientific-Re...
As a worker, I would like the opportunity to switch careers/find my way without having to take multi-year training courses for every possible job.
Same about products: sometimes all I need is a cheap drill from Walmart and not an expensive Bosch one that would last me a lifetime.
I can't read the articles right now, but I've seen the book in Germany and it did look interesting! :-)
To give an example: on many tombstones on Austrian graveyards the official titles the person had are written; even more strange: for women even the title of their men is implied in the title on their tomb stones (for example: "Oberamtsratsgattin" (I really find this word funny) - a word that cannot really expressed in English for a lack of words for official titles; I'd translate it clumsily with "wife of a man that was a public official with the official title "Oberamtsrat" [a rather respected official title]")
So if you claim Germans have a title fetish, go to Austria. When you come back, you'll consider Germany a really-not-title-obsessed contry.
For example, not so long ago it was common to call wifes of doctors "Frau Doktor", but I've never in my life heard a person < 60 years saying that to the wife of a doctor.
Granted, there are still some strange titles floating around which do not mean much, but they're also fading away quickly. And even though many people may hold a title, my personal observation is that they're shown only very rarely.
So while Austrians had a strong title fetish, I wouldn't say that's neccessarily true anymore. Especially not for the upcoming generations. So don't expect too much title fetish in Austria, you might be disappointed. But be sure to visit the "Zentralfriedhof" in Vienna, it's one of the largest cemeteries in the world and walking through it is a wonderful journey through the past, packed with a plethora of stories.
It can be difficult to find competitive jobs without a tertiary education (college or apprenticeship). But that has little to do with a title fetish and much with the fact that tertiary education is heavily subsidized (both college and apprenticeships), so the vast majority of Germans have one. Note in particular that German apprenticeships are not internships; they are accredited forms of education in the dual system [2].
Without such an education, you will almost always compete against a person who has it, so even though it may not be strictly needed, it may be difficult to impossible to get a job without one (especially in jobs that do require experience or training).
That's not to say that forms of rent-seeking do not occur within this system, but they generally occur at higher levels of qualification (such as requiring a "Meister" -- not to be confused with a master's degree -- to run certain kinds of businesses).
[1] http://www.arbeitsagentur.de/nn_419854/Navigation/zentral/Ve...
Alternative: gain valuable job experience from day 1 (ok, maybe week 2 after a short local training) and be fired after 3 months if you're unsuccessful and showing no potential. Unheard of in (non-Eastern) Europe.
[/rant] :)