I can't see myself using a LFS system in production.
I've been trying to work on getting my own distribution started from scratch myself, while LFS is a great starting point I needed to have multiple architectures. (For now I'm targeting just x86_64, aarch64 and riscv64) Which the current implementation of LFS is only applicable if you have a host with the same arch that your targeting. I've spent about maybe 9 to 15 months scripting, cross compiling, and researching this thing. Even tried looking at other projects that have somewhat simple bootstrapping processes that use musl such as Dragora Linux, Alpine Linux and Ataraxia Linux to bootstrap everything. However I couldn't really get to a good point in the compilation process where I can chroot into it and start building stuff. Might I note a year or so ago I didn't know much about toolchains, embedded buildtools, etc. but I did have a deep love for embedded.
Now with these new LFS news and the changes that there are proposing / have implemented it seems that cross compiling for other archs will be a little easier since you have a good starting point to branch off of for other architectures (Though solely on your own or via lfs-hints if people are inclined to submit their alterations.). As of right now I'm running the first 3rd of the new development book, was able to write up a quick bootstrap script and bootstrap folder structure to get things going. So pretty excited about these new LFS changes and how they will pan out in the coming months.
EDIT: Forgot to add, before anybody makes any assumptions. No, it's not going to be another desktop distro. It's purely focused on server machines (No GUI) with a focus on distributed systems think CoreOS / Clear Linux.
I have used Yocto quite a bit and it's nice. But embedded systems tend to be pretty simple.
What I would actually like to see is a modern scripting language like lua or Scheme embedded in the make binary.
I like the idea of an embedded OS for running containers. There is actually quite a bit of support in systemd for that. So it might be as simple as Buildroot with systemd init plus a mechanism for managing system updates.
Nerves is another nice approach: https://www.nerves-project.org/
Also you could look at xmake if your interested in a make like tool that has lua support: https://xmake.io/#/
I've used debootstrap to build a Debian distro for ARM with a custom kernel (for an Olimex board target or Beaglebone.) That's very hands-off and not nearly the same "depth" as LFS. The next step was taking the same kernel and building a busybox-based rootfs. Then I had to make my own PID 1 and do init work to bring up services such as networking on boot which was very educational, yet busybox provides most of the "lego bricks" that you're not left writing too much from scratch.
Building to an embedded target also allows one to punt on the most annoying and complex parts of a desktop linux distro, such as the desktop environment, audio/video drivers, UEFI bootloader, etc. Building a semi-custom (e.g. Arch or Debian/debootstrap, Buildroot or OpenEmbedded) headless distro was what I'd call a "shallow dive" or gentle introduction to more of Linux's inner workings without having to understand every bit in order to get a running system.
Debian or buildroot are fine to bootstrap new or natively unsupported architectures.