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Yeah that's normal here, but after 2 or 3 days a doctors appointment and attestation of sickness is mandatory.
I think it's good that some companies offer money for returning to work, as the system is very inflexible without those incentives. I'm sick myself rn and while I could probably go to work, I would be wasted after 6 hours. I'd still have 3 hours to go though and if I leave early, those are written negative to my hours calculation. So rn I can decide to stay home until I'm fully recovered with zero repercussions for me, or go to work with less than 100 % of my performance and get punished for it.

All of this overly bureaucratic wagie employment shit is kinda annoying to me, but the alternative (self-employment) is much worse, as in much more effort doing your taxes.

But there is no way that many working age Germans are constantly getting sick. And all they have to do is call their doctor and say they’re sick - it counts as a doctor appointment.

I think it's rather simple. Treat people like children and they will behave like children. If I and other people could just work "as much as I feel comfortable with" IF I'm sick, and from home, I would.
As it is, it's a rigid system where either I'm sick = ZERO work; or I'm healthy = 40 hours/week and no less. I didn't invent it but I can't condemn others or myself for dealing with the given system so it doesn't work to our disadvantage.
And I do believe that many Germans are actually sick, with psych problems soaring n shit, the main difference is that since covid, people feel more comfortable staying at home with "just a sniffle" instead of going to work half-sick.

Did the work-from-home idea become popular in Germany or did companies make employees come into the office every day?