I tend to think of it as Country Fried Steak and regard it as Western not Southern. Looking it up, there is some justification for that https://en.m.wikipedia.org/wiki/Chicken_fried_steak
I did have it a lot growing up in Texas, so maybe it is more western. Or perhaps just not Appalachian.
I love schnitzel too. I had no idea they were related but it makes sense. Although my schnitzel has to be crispy, NO gravy, and served with lemon wedges. Country or chicken fried steak has to have a cream gravy - brown is just so wrong, Lol! And chicken fried chicken is awesome! Had some in Kerrville TX to die for
I think you are on to something there, it is very popular here in the south west.
But if the south fries chicken, green tomatoes and other things, why not steak?
FTA:The precise origins of the dish are unclear, but many sources attribute its development to German and Austrian immigrants to Texas in the 19th century, who brought recipes for wiener schnitzel from Europe to the USA.[1] Lamesa, the seat of Dawson County on the Texas South Plains, claims to be the birthplace of chicken fried steak, and hosts an annual celebration accordingly.[2]