i could imagine LH buying Austrian Airlines.
Oh, and they could found a new Airline for Belgium if DAT fails
I doubt that KLM will merge, as they are the "royal dutch airline", and they are maybe the same for the netherlands what the Swissair was(and what Swiss Air Lines will be) for Switzerland.
But those countries have a very small home market:
The Netherlands have 15.000.000 inhabitans, Switzerland only 7.000.000 ! Compare this with 59.000.000 people living in the UK or 83.000.000 in Germany !! It would be easier if the Swiss Air Lines and AUA merge with LH as they would have a market of nearly 100.000.000 People together(Most people in Switzerland speak German, about 70% i think). But Switzerland wants to independent from everything and everyone, so they will always have their "own" airline