Great move by LH!
I think LUX is a bigger market than many people know.
As for the "bigshots" wanting the status miles- my suggestion is that it is probably more an "annoyance" factor they are taking away from some very good customers by adding the status miles as opposed to customers choosing their airline based on this. From what I understand, there is a pretty good long-haul F market that originates from LUX area- some very interesting companies there.
For me, personally, this is nice as I will pick up a few status miles with this now.