Old -- but I feel and agree with you.
And before the "but a M&M ticket is flexible" fraction chimes in: a) no, not in this case, and b) it doesn't matter, if you don't want or need flexibility.
HTB.
And Miles & More is not much different from most other European FFPs in this regard.
Using your miles for shorthaul bookings is an incredibly bad idea - better to keep your miles for longhaul, especially premium, redemptions - and this holds for most European FFPs (one notable exception being BA's Reward Flight Savers). So most savvy flyers know not to make such bookings unless
a) the flexibility is needed
b) the booking is for a one-way flight for which the cash price is ridiculous
c) the booking is short notice and the cash price is ridiculous