Kräuter

If you've ever been to Germany, you might have noticed their obsession with Kräuter. It is written everywhere and they put it on everything. I'm still not even 100% sure what it is.
The other thing about Germans is that they are very literal. One time we went out to eat and Jon wanted to order schnitzel with Kräuter butter, but he wasn't sure what it was, so he asked the waitress.
She laughed and said, "Butter...mit Kräuter..."
According to my German/English dictionary, Kräuter is defined as herbs, but it doesn't get any more specific than that. I've had Kräuterbutter, Kräuter salad dressing, cheese with Kräuter, and the other day when I went to buy toothpaste, I had to try the Kräuter kind, made by Crest. Really? Kräuter flavored toothpaste? Where does the line get drawn here?