I wouldn't be so quick to write off MAN. Between the mainline, Baby and Regional operations there, I think LH might put their expertise with operating multiple hubs to use. LH have already said MAN-India is a big market for them, the NYC area, possibly a west coast destination and MIA may have potential for service.
LH may be able to take advantage of any cost savings at Baby to expand growth on short haul European services, re-fleeting MAN with mainline A319 as long/medium haul service grows at LHR as short hauls like BRU, MME, LBA, etc are withdrawn and moving the 737s to CWL, EMA, BHX, or if they are feeling very brave, Scotland. Eventually those 733s will have to go, they are just not reliable enough for the type of scheduling WW demands of them, at least the ones at MAN.