My son found this entry in wikipedia, and told me that I was wrong in thinking that Königssee means King's Lake:
http://en.wikipedia.org/wiki/Königssee
...The literal translation appears to be King's Lake, but this is not correct. While König does indeed mean king, the name of the lake comes from the first name Kuno, which appears in several historical sources, and it was formerly called Kunigsee...
Either way, my family and I really enjoyed the area and especially the pristine waters of the Königssee.