Me, I also would have gone back to MUC. If you loose a wheel, you probably don't retract the gear (if you were aware off). If you divert with landing gear extended, you might end up in the same situation as the Hapag-Lloyd A310 did in VIE (i.e. on the grass).
Although the F70/100 doesn't have such a great fuel penalty as her bigger sisters.
And if they declared an emergency, then surely it was an emergency landing, wasn't it?