As sad as it is for LH staff at the smaller german airports, I think their strike is only positioning for better conditions in transit from mainline to GermanWings, it wonīt change the main decisions of management to focus mainline traffic to FRA and MUC, especially because this process has started some time ago and wonīt be reversed.Just another view onto your arguments: LH should start competing in LC leisure and family traffic to Turkey? I donīt think this could fit into strategy to focus on basic tasks of Germanyīs only global airline.
Connecting traffic via DUS ? I think itīs negelectable, main transit traffic is happening in FRA and MUC, especially TXL-ORD traffic will mainly use direct service with Air Berlin.
Personally I donīt care which aircraft/airline I use for an hourīs flight within Germany, the Lufthansa service doesnīt differ much from competitors and even business travel nowadays trends to observe the costs. Thanks to widespread LLC experience the normal passenger nowadays is used to narrow seating and no complimentary service on short flights, not willing to pay essentially more for a coffee machine in the waiting area and a plastic-packed sandwich during flight.
Many competitors with a sparkling bright history of luxury and first class ego already left the market or lost their image completely. Lufthansa has to change drastically not to follow those into air traffic history books.