If this is indeed LH's official policy re: damaged luggage, sorry, it comes across as a little tacky. While airlines are generally not responsible for normal / expected wear & tear of luggage during transport, there is no doubt many quality airlines still choose to do so as part of their overall ground services. While I applaud LH for going above and beyond what is minimally required with such official policy, the way it is designed can come across as a little insensitive. Losing one's luggage is stressful enough, never mind that not all countries subscribe to such linear depreciation methodology. Very often, people also assign non-quantifiable (e.g. emotional) value to their lost luggage for instance, say the luggage is a gift from some special occasion or someone.

If the policy exists primarily to serve mostly as the function of customer service as opposed to fulfilling a legal obligation when it comes to damaged luggage, then it would seem the policy could have been stated without being so mechanical. I understand LH needs a clear and fair policy when it comes to things like damage luggage and LH does an amazing job with its website with so much well organized details. However, I want to point out that LH does serve a clientele from all around the world and LH clearly cannot survive with just a core German customers - just keep in mind, in many other cultures and languages, the way this was stated can come across as somewhat insensitive as if one doesn't care even though it is not the intention.