I'm of the opinion that stuff you can't stop might as well be legal. The main problem is that both the buyer and the seller want it to go on. Both the victim and the offender, (no matter if the victim is the man or the woman) want it to continue and want to keep it away from the cops. Since women aren't as strong as men, making it illegal will make them easy targets for violent crime done by men. No matter how repulsive we might think prostitution is, making it illegal doesn't make it go away. We don't condone everything that we make legal. That's a common missconception. We shouldn't mix up the laws in the lawbook with the ones in the Bible. Laws are intended to make life easier for everybody, not act as ethical guides. I'm willing to bet that whether we legalise it or not will have absolutely no impact on the number of women making money off it. All we do by legalising it is protecting the women from violence.
That German problem is easy to fix with a law making sex-jobs exempt from the losing her benefits. So it's no biggie and doesn't really have any impact on the dilemma.