I've lived in Germany for 20 years and my DC have lived here all their lives.
In rural Germany and small towns, not only is it common for DC to go to school by themselves from 6 onwards (year 1), but it is seen as an affront to civilisation if parents try to take them. I was on a forum once where this was discussed and one father called it an 'Unding' (absurd, preposterous) that children should NOT walk to school by themselves.
Now, we live in a big bad city, and there aren't many parents who let their kids go all alone at 6 (but more out of fear of traffic than anything else). I do think some of the rural parents are living some sort of 1950s dream and haven't woken up to very different road conditions nowadays. I asked a traffic policeman once here when he would recommend children going by themselves and he said, depending on the child's maturity in traffic, about 9. This fits in with our experience, and a lot of other parents here. DD2 started taking the bus by herself recently and she's 9. When DD1 was 11 she used to take DD2 (then 7) home on the bus as well. However, I'm at home when they get there, so I can get to them very quickly if there's a problem (bus doesn't turn up etc) and they phone me.
Re the wood carving knife: DD2's class used to do this as an activity when they were 6 and DD2 was given a wood carver for her 7th birthday from some friends. It comes with its own sheath and DD knows to be careful and to carve away from her body. It's not a problem. I'd rather her do that than spend hours each day on a DS2.
By comparison, certain children in the UK come across as neurotically overprotected in some respects, but horribly exposed to the negative side of adulthood on the other. There seems to be very little encouragement to develop responsible behaviour, but greater tolerance for watching unsuitable TV programmes/playing adult computer games or drinking alcohol early on. Admittedly it's difficult for me to form a proper view, as a lot of what I know about British DC comes from here!