Hi Dmac,
As you zoom-in on Google earth, the image sometimes changes from a satellite photo taken from directly overhead to an image taken from an oblique angle and possibly taken from a much lower altitude.
I noticed it the other day when looking at/zooming-in on a location in Spain, and I think the same thing happens on the image of Luxembourg airport.
So, if the oblique photo was taken from the north, any aircraft directly over the runway might appear to be displaced to the south of the runway, due to the perspective and angle of the photograph.
As you say, the shadow suggests the aircraft is actually flying quite low – about to touch down I would guess.
So, I believe the aircraft is actually directly above the runway about to touch down rather than off to the left (south) as it first appears, or that it has maybe started a missed approach/go-around, and that the oblique angle of the photo makes it look like it is not over the runway.
The curious optical “rainbow” is probably the sunlight being reflected back off the propellor, and/or due to raindrops/moisture in the air?
Paul F