Lufthansa Cityline will phase out some of the CRJ 700s. Also there will be no one moving to LH mainline in the next year as they do have too many pilots. So the hiring outlook should not be good.
If you fullfill the reqirements you can move to mainline, mostly via Lufthansa Cargo. But you will start at the bottom of the seniority list.
New staff will only be based in FRA and MUC.
The integration into LH mainline is an issue since the start, but seams unlikely at the moment.
But everything can change fast and the new situation will be different.