LH to MUC is indeed pulling out in a couple of weeks.
However, LON-MUC is a highly competitive market.
LON-NUE isn't. Served by AB at the moment, who pull out in Jan13 just before CityJet takes over, CityJet will be providing the only LON connection from the region. In 2011, AB carried around 117k pax on NUE-LON (first STN, then switch to LGW). With 737-700. and AB is not exactly charing LCC prices, more Norwegian style pricing. Weekly rotations down by one, A/C down to Avro, it sounds workable.