Attracting unwanted attention
There has already been much speculation that it is Lufthansa's apparent predilection for losing temporarily misplacing customers' baggage and poor handling of this that has prompted the ban. Since the reasons cited for the ban so far are obviously specious, any attempts to find some strict interpretation of the rules which does justify a ban are not going to work in their favour.
The sane, and reputational damage limiting response, is to reverse the ban ASAP, because otherwise this is going to blow up all over the Internet (I mean, more so even than it has already). Otherwise, very, very soon we'll be seeing BBC segments looking at how often Lufthansa mislays baggage, and RyanAir running ads saying that at least they aren't as bad as Lufthansa :)