Rocketjunkie,
At least in Kansas there have been two LUP's issued, and one of them is mine and the other a rocket buddy . If I had to do it again I'd go for the LEUP and just may do that one of these years. The LUP requires the same amount of intrusiveness as a LEUP and the restrictions are the same as you noted. The cost difference is not worth the additional restrictions, ie. 6 purchases per year, extra paperwork, no interstate buying or flying, etc.
The LUP was not hard to get, in fact, the ATF agent was very informitive and personable during the interview. After the official stuff, and she was real official, she was interested in my rockets and wanted to get her boys into the hobby. I had to contact her several times with questions and she was always accomodating.
Typical government though, I had to send my permit back once cause the premisis address was wrong and I received four information packets in the mail. Anybody need a Orange Book?
The LUP does make extra work for your motor vendor, however, I have not found a motor vendor yet that minds. Motor purchases=profit.
If any one is trying to chose between a LUP and a LEUP, go for the LEUP would be my advice.