The first thing that comes to mind when most people think of Lufthansa is probably not "great domestic value". However, the versatility of Lufthansa's miles program really shows in that it can be used on partner flights as well. In this case, that means United.
If you take a look at the Lufthansa handy partner award PDF (http://www.miles-and-more.com/mediapool/pdf/20/media_785183620.pdf) you will see that domestic round trip in first class is only 35,000 miles, or 17,500 one way which is great value. One caveat is that these cannot be redeemed to anywhere outside the continental US, so no Alaska or Hawaii first class, unfortunately.
United has introduced fully lie-flat in their business class product for LAX/SFO-NYC routes. The United seats (not the whole United product) are some of the best in the sky. Certainly one of the best transcons!
However, being able to book a transcontinental flight in first class for 35,000 miles round trip is still great value, considering the retail cost of such a flight is close to $2300. In fact, the deal gets a bit better if you work with Lufthansa a bit. One ways for some reason round down with miles to 17,000 miles, so if you book two one-way's instead of a round trip, you save 1,000 miles and it ends up being 34,000 miles for the journey. Nice.
In my mind, this is one of the best redemptions of Lufthansa miles — you can get incredible value this way. For shorter domestic flights, BA Avios is still likely the best value, but for anything over 1500 miles or so, using Lufthansa miles on United is clearly the winner out of ANY airline program for domestic first class mileage redemption value.
If you sign up for the Lufthansa Miles & More card from Barclays you will receive 50,000 miles – enough for 3 one-way flights in domestic first class!