Southwest Airlines is currently undergoing a major transformation, which includes charging for checked bags, introducing assigned and extra legroom seating, etc. It goes beyond that, though, as Southwest is also increasingly launching airline partnerships.
Continue reading: Southwest Airlines & Condor Launch Partnership: What Are The Implications?
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Southwest's hubs are largely not in major gateways for foreign carriers so, yes, it is correct that this isn't a big deal.
If WN gets serious about flying international and buys its own widebodies to operate from its "hubs" to its partner hubs, then WN could fairly quickly become a significant international player by focusing on strong partnerships with up to a half dozen foreign carriers
and, it isn't a surprise that many of these carriers are also AS partners and that isn't likely to change anytime soon; but that will change as AS' non-oneworld partners get closer to US partners.
AS and WN are throwing increasing number of punches to each other at a time when neither can really afford a competitive slugfest
I could certainly see Condor selling into Southwest’s network, but how many Americans will do the reverse. To get to… Frankfurt?
To be fair, Condor has quietly been growing their own-metal regional connections at a breakneck rate. They now offer London, Paris, major German cities, Portugal, Morocco, Egypt, and two dozen destinations in the Italian/Greek/French/Spanish/Turkish Mediterranean.
Frankly speaking, that's where the majority of North American originating transatlantic traffic goes. Condor still needs to add additional frequencies, since not all destinations can connect same-day to their transatlantic flights, but that seems to be what all their incoming A320/A321 will be for.
"Southwest's hubs are largely not in major gateways for foreign carriers so, yes, it is correct that this isn't a big deal."
You're looking at this through Delta-eyes. For Condor/Southwest, that's a GOOD thing.
The two of them would never be anything more than also-rans in a market like New York, but they could (if their relationship got closer) put up a real fight against any incumbents in a place like Vegas.