I think a good strategy would be for MC to do whatever they can to enhance the DLNA send to Squeezeboxes via Whitebear experience. That way Squeezebox users can just point LMS to an empty folder and use MC/JRemote for browsing and controlling playback. Only the basic functionality of LMS (sending streams to a particular player or to a group of synced players) would then be needed. I think many users with large libraries, especially on Windows, experience performance issues with LMS and would benefit from all the capabilities of MC. There are also some issues with LMS (very long scan times and issues with picking up changed cover art etc.) that can be avoided this way.
For those of us used to iPeng and Squeezepad the ability to use the MC (web) link feature with web gizmo and JRemote would be very welcome, for instance. Being able to easily look up artists and albums on the Internet when browsing with JRemote on the iPad (in app or via Safari) would enhance the experience and make it more equivalent to what we are used to with the Squeezebox apps.