Regarding the discrmination of German residents with M&M ... some people want to fight this in court. LH'S standpoint is, that you'll have easier access to the airline's network if residing in G. and it would be way too easy to gain SEN with 100k miles.
I totally disagree that UA MP would be the better FFP if flying within Germany. My intra German flts. got me 625 miles with MP. LH M&M earns 2.500 for the very same flight. So this is four times the miles I got with MP

(even in coach it is double the value)