cheques are practically unknown here in Germany.
Not exactly true. Many companies, and the Finanzamt still tend to use cheques when refunding monies.
Any time I have de-registered my car in Germany, I have always received tax refunds in the form of a Verrechnungsscheck (crossed cheque)
German Banks stopped using cheques in January 2002. I deposited a large cheque a couple of months later and was charged a 20 Euro fee. I expect it has increased since then. If you use a bank transfer you will be charged fees both in the UK and Germany.
Me thinks you have got national cheques mixed with the Eurocheque.
The Eurocheque was a cross-border cheque, done away with in 2002 in favour of cross-border electronic payments. If National cheques were done away with, then someone at the Deutsche Bank has been asleep, 'cos I've cashed in a number of the things since 2002 - the last one in November 2005