what are they doing?
lufthansa will have a problem if they change the mileage amount necessary for requalification. HONs will know wheather they'll make it again or not. so if they don't make it, they will stop flying LH (who wants to be SEN after HON?).
ex HONs will start flying SQ (better service, better seats) and UA (lie-flat beds in C) and collect with other FFP. UA MP for example has lower redemption levels and less surcharges (about 70 EUR for a TATL C award, LH wants 250 EUR + more miles).
so i think lufthansa will let the requalification level for old HONs at 600.000 miles/2 years and with 50% bonus. for new HONs this might be different.
and regarding the free baggage pick-up in the FRA area, free hotel stay or free rental cars. not all HONs live in FRA. and who needs free hotel stays or rental cars? for free nights at hotels almost all HONs have hyatt gold passport, marriot rewards... and rental cars are cheap. lufthansa mustn't forget that miles&more is a frequent flyer program.
my source told me that lufthansa had about 2.500-3.000 HONs a year ago...