Anything that weakens the power of the network is a loss. I don't care at all about being in business intra europe on a 90 min flight, but the connections to other cities means better mileage availability and better connections.
Only good thing is that my wife and I spent 10 days touring Sweden and Norway back in June, so wasn't planning another trip for quite some time.
I would hope that LH expands in the nordics to balance this out