Doug, there is another way and Europe has done a good job with winch operations, although the winch will never replace the towplane here in the USA, with the right geographic set up it could work well. Now about towing with the LSA, I cannot see that as a replacement for a higher powered tug like the Pawnee or 182. In my young days I made a tow with a j-3 cub 65 hp, pulling a Std. Cirrus , not pretty, buy I am still alive. There is nothing that replaces power in every stage of the tow, looks to me like one would need Usain Bolt as a wing runner with that LSA contraption.
Many people on this forum have towed behind the ,"Towpecker" and they will tell you that when I say, hold on, you better get ready to go, because that fuel guzzling beast is up and gone. The LSA would never stand the punishment that our Pawnee endures during training flights, that Pawnee will give you more safety during a possible upset, I'll take that Pawnee or 182, or 180 like I flew yesterday any day of the week. Old Bob, The Purist