I agree with everything you said.
LSF is not a distro. It is a instruction manual and teaching aid.
Don't use it as a base for your main OS
OP, you can use it as your main OS, and I know some people do. I wouldn't recommend it, though. Because once you have LFS you realise that you need at least automatic dependency resolution. And once you start thinking about it you realise that you're reinventing a package manager. At that point just use a distro you like :D