the article is very poor and often untrue and excellerated! I am born in Titisee and must say, the person(s) who wrote this stuff doesn't know anything about it. It seems, he or she didn't took enough time and interest to learn to know the place! I have to believe, he or she only walked down the single road all tourists do and fell for all the silly souvenir shops there...
First: the Titisee is no man-made lake but a remain of ancient glaciers covering the Feldberg. Most tourists at least in the hot spots like Titisee are American and Japanese who want to see the country of the series "Schwarzwaldklinik" with Prof. Brinkman they know out of TV. They mostly spent very few time there and jumo from place to place. People who stay longer are mainly people coming every year to the Black Forest to relax, enjoy the nature, fresh air, the view and hike. Especially the many wild and romantous gorges are quite impressive (Wutach Schlucht, Ravenna Schlucht, Höllental) and not as difficult to do as many tours in the Alpes. Motorcycling also is very popular because of the mountainous streets.
Many of the information is untrue: I know two Pizzerias in Titisee where two people could eat nicely for 20 Euro (The "Pescatore" and the "Rusticana", 2005). In the villages around many small restaurants serve traditional home-made food, sometimes produced by their own farm. A wonderful place like this near Titisee is the Gasthaus Strauß in Jostal. You can hike there and enjoy the view of mountains and forests. Of course the best Schwarzwälder Kirschtorte isn't selled right next to the Titisee. You have to go to the traditional cafes and bakeries around, perhaps the Vogelbacherstüble or the Salenhof in the valley Schwärzenbach or the Cafe Becker in Titisee or the Cafe Butsch.
There is budget accommodation, too, for example the two Jugendherbergen (YHA) in Titisee and several small bed&breakfast a few kilometres off the lake.
Best is to bring or borrow a car or a motorcycle, but since short time every registered tourist in the Titisee region can use all busses and trains for free. But you aren't able to get to the very best spots without a car (unless you are a good hiker): the very wild valleys, the best restaurants and cafes and the most natural areas.
 If you encounter a bear...
you absolutely MUST NOT run! What idiot wrote this??