I have boarded in the *G line countless times on countless Star Alliance airlines in countless countries (just a few years ago I couldn't have said that). Never once had an issue with my *G status not being recognized. I have had to get my MP number placed manually at the check in counter a few times.

If one travels internationally, there is no questioning the benefits of *G status over a non-elite or even silver. Forget lounge access; it's all about avoiding ridiculous (normal?) check-in lines for non-elites.

But like others here, not sure what the OP is saying he/she is losing out on? LH often doesn't recognize status at their lounge without proof (how a plastic card is "proof" is beyond me, although the on-line representation works as well) despite the ticket being clearly labeled *G. No biggie. Other lounges have been casual enough I've wondered if they let anyone in with a halfway-decent story.