Your code does not work because you are trying to route to non-bound methods. Non-bound methods do not have a reference to self, how could they, if instance of App has not been created?
If you want to route to class methods, you first have to initialize your class and then bottle.route() to methods on that object like so:
import bottle        
class App(object):
    def __init__(self,param):
        self.param   = param
    def index1(self):
        return("I'm 1 | self.param = %s" % self.param)
myapp = App(param='some param')
bottle.route("/1")(myapp.index1)
If you want to stick routes definitions near the handlers, you can do something like this:
def routeapp(obj):
    for kw in dir(app):
        attr = getattr(app, kw)
        if hasattr(attr, 'route'):
            bottle.route(attr.route)(attr)
class App(object):
    def __init__(self, config):
        self.config = config
    def index(self):
        pass
    index.route = '/index/'
app = App({'config':1})
routeapp(app)
Don't do the bottle.route() part in App.__init__(), because you won't be able to create two instances of App class.
If you like the syntax of decorators more than setting attribute index.route=, you can write a simple decorator:
def methodroute(route):
    def decorator(f):
        f.route = route
        return f
    return decorator
class App(object):
    @methodroute('/index/')
    def index(self):
        pass