The German legal system does put somewhat of a damper on "every bit of money". First, it can only be charged as attorney fees, and if it exceeds the legal schedule, it needs to be very clearly called out as an attorney fee agreement. So "or not" is off the table.

Secondly, there is a morality clause with regards to attorney fees, so usurious rates like some US attorneys charge are harder to achieve.

This doesn't mean German attorneys are cheap. It's just not quite as out of control as the US legal system. (Though attorney's professional bodies are obviously lobbying to make it easier to charge more)

The legal fee schedule does put a damper on attorney work, and more importantly, makes it somewhat easier to predict costs should you need an attorney. If it's enough of a damper is open to interpretation. I

The short answer would be to make legal representation less valuable. Ensure that all cases (civil, criminal or otherwise) are tried and concluded quickly including appeals and streamline the law so that there is a lot less maneuverability. Lawyers wouldn't vanish (having someone knowledgeable and with proper negotiating distance will always be valuable), but they would lose a lot of leverage.

Of course, if there's one thing that lawyers are less likely to do than cap the earnings of their profession, it's to devalue it entirely.

You could also increase supply by reducing the level of qualification needed to become a lawyer. Increased competition would drive prices down. That too is highly unlikely.

I think the joke is just that awarding "attorney fees" sets up a perverse incentive, much like "cost plus" pricing agreements. It's a bad idea.

Note that Germany generally has a loser pays system (there are some caveats), so this will definitely not be true, because they can recover the legal costs from Chessbase.