Lufthansa is stepping away for German Wings, Air France retreated to Paris, Iberia pulled back to Madrid and KLM re-trenched at AMS. If we want to fly in Europe at loco prices we can't expect a business with network carrier costs to work at MAN as they have no feed, whereas the other guy, AF/KLM/LX/TP/LH is feeding their hub at the other end
I'm afraid that some of that is not accurate. German Wings is a wholly owned subsidiary of Lufthansa, and LH continues to offer the routes it has handed to German Wings via Lufthansa.com, although under 4U flight codes, and interline remains possible on through the 4U/LH network. Air France have always been Paris-centric - France operates in a similar way to that in which the UK does. KLM only ever had one base - AMS, the Netherlands really is too small to have more than one major airport - though I expect that Maastricht airport fans might dispute that.
The UK is plenty big enough to operate the "German model" - but it is it's politics and the unfair amount of government money (the olympics, national footie stadium, millennium dome, cross rail etc etc) that get poured into the southeast that precludes proper growth and a balanced economy in the aviation sector, and wider economy here in UK.
And, Manchester airport fans (and those of BHX, NCL, GLA) it will in all probability remain so. (from some who doesn't live in London - thank the Lord!).