I agree, I think m/s is the best config to use with the LSD2 since you are stuck in x/y anyhow and going m/s allows you to adjust the angle in post. I'd use it 100% of the time, except I'm lazy and the m/s>stereo mixdown can be time consuming. I recommend not using headphones for the m/s mixdown. What sounds good on headphones doesn't always correspond with speakers.
Yes, the m/s tool is in Waves.