Europeans, at least Germans, traditionally have considered a washcloth and soap to be personal items, something you brought with you.  Hotels did not supply them.  I understand that in Japan, the hotel provides a toothbrush.  They must consider accommodations here to be rather "lackluster" by comparison.
Sometimes a washcloth and soap are not included, but today, more often than not, they are.  Nevertheless, I bring mine with me.  I've never had a room in Germany that did not have towels.
Actually, I think the Europeans, again at least the Germans, have a higher standard than we do in their accommodations.  Over there, I would never be hesitant to book a €20 room.  Although it might be small, it will be clean, comfortable, and well maintained.  What would you get for $30 a night in this country.  In Germany, the included breakfast might not be "reichhaltiges", but it would be adequate; it would certainly be more than a piece of coffee cake and a cup of coffee in a paper cup.