As long as Lufthansa's customers are happy to continue paying the higher airfares needed to support the pilots generous packages, the company remains profitable and isn't begging for taxpayer handouts then I can see no problem.
It's the old legacy airlines which cling to outdated working practices, pay the staff more than they are worth and expect government handouts to keep it all going that are the problem.
A quality service requires better staff who expect to be paid more. If the customer is prepared to pay extra to fly Lufthansa instead of Ryanair then fair enough.