More to the point, how to German dictionaries handle this?

Is there a distinction between words that get enumerated and compound nouns that do not?

It does seem, though, that German speakers might be more comfortable with the fuzziness that apparently exists at the edges of what the word "word" means.

In general, transparent compounds, i.e. those whose meaning can be derived from the elements, are not in the dictionary. Mushroom soup is transparent; Krankenhaus, which means hospital, but is literally sick-people home, isn't.