It depends on the point of view you look at this issue. There are certainly more travellers like me who have another destination than MUC ad FRA and who don't live in Southern Germany or in the Rhein-Main area.
Just think of all the employees who have worked for the LH main line. They can either quit the company or move to germanwings unless they want to move to FRA or MUC.
I would say that in some way Lufthansa will definitely be missed and that LH's plans are game-changing.
And what about "Frequent Travellers"? I don't think they are happy to pay a 25€ fee to get lounge access when travelling on germanwings.