If LH wanted to reduce their number of SENs, then cutting back Q S V W to 50% earning will be an exceptionally effective way of doing it.
My feeling is that I would need to roughly double my spend on Y-fares to continue earning at the rate I do now on mainly S V W fares for long-haul. That's just unthinkable in the current climate (and any climate, tbh).
It seems like LH wanted to cut their number of SENs, and felt that there was a group of people 'working the system' to get their status unfairly. I think they've over-reacted, and it will be quite harmful overall.