1.) Germany has civil laws giving a person depicted similar rights as the creator of an image. It is also an criminal offense publishing images, that are designt to damage an persons public image, Those aren't perfect, mainly because there wording is outdated, but the more general legal sentiment is there.
2.) The police traces the origin through detective work. Social Cycles in schools aren't that huge so p2p distribution is pretty traceable & publishing sites usually have ip-logs.
A criminal court decides the severity of the punishment for the perpetrator. A civil court decides about the amount of monetary damages, that were caused and have to be compensated by the perp or his/her legal guardian.
People simply forwarding such material can also be liable (since they are distributing copyrighted material) & therefore the distribution can be slowed or stopped.,
3.) It gives the police a reason to investigate, gives victims a tool to stop distribution & is a way to compensate the damages caused to victims
Nah. Things like this aren't meant to have a large appeal. It aims to expoilt the few customer with lack of financial control. 'Just not buying' doesn't really hurt the company since it didn't really cost anything in the first place. It is (like a scam) designed to filter out financially irresponsibile people and extract as much money as possible from them.