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Now I have some stats on Deutsche Bahn and MVV employees who check tickets in local trains.

1. Monthly ticket for Munich and nearest suburbs costs 64E (42E for students). Fine is 40 euros. I use public transport a lot (70+ rides per month), and on average I encounter checks once every two months. 90% of the checks I see can be easily avoided if one pays attention to what happens nearby.
E.g. I've used S-Bahn to the airport about 100 times, and tickets were only checked once. My monthly ticket does not work there so I spent 10E each time.
Do the math.

2. Monthly ticket for local trains costs around 250E, and it does not allow using fast ICE trains. However, based on my experience when traveling on ICE in rush hour tickets are never checked.

I realize in other parts of the Germany checks are more widespread, but here in Bavaria it is very relaxed.

Disclaimer 1: Use the data above at your own risk.
Disclaimer 2: I always buy a ticket, because I have no shortage in money and risk does not worth the troubles.

Upd: Someone commented below that in Nuernberg-Muenchen ICE they always check tickets even in rush hour.

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