Yes, there's no real benefit in MP unless you make 1K and get those SWUs. But even that's only if - and that's a big if - those SWUs will still be valid for LH stand-by in the future. I wouldn't bet on this being the case in 2008, which will be the first year the OP can use any SWUs after he made 1K some day in late 2007.

MP currently is a decent program for cheapo flyers with a lot of E,T,L etc. segments intra-Germany and -Europe, as you can currently still earn full segment points and at least 500 EQM/RDM miles per segment in those LH booking classes that credit zero segments and a nasty 125 status&bonus miles on M&M (plus exec. bonus). However, this is nothing to bank on, as it could change any day.

What remains for 1Ps and 1Ks flying LH is the perk to earn 200% RDM on cheap TATL flights (LH and UA), even in W class and below, where M&M only awards 50% base miles.

Then again, it may be tricky to actually use all those extra MP miles on LH and other non-UA metal, as MP award availability is quite restricted and MP call center agents can be a major pain to deal with.

Personally, I am now happily going all the way from 1K to Blue until 2009. I won't miss a thing, but gain quite something, as not renewing MP status will save me 10,000-15,000 EUR of paid "status renewal" travel each year, while allowing me to use all my M&M miles for valuable longhaul travel in nothing else but premium carrier F.