I'm not sure thats entirely correct - as far as I'm aware it only brakes the wheel which is losing traction, it doesn't transfer power across to the wheel with better traction....
And LSD's are fantastic on FWD cars - I'm having one fitted to my GTA as we speak - because after driving the ITR for so long, you really miss it.
Bear in mind there are LSD's and Torsen Diffs - they're slightly different. I'm having a Torsen diff fitted to the GTA (ITR was Torsen too). Not 100% sure on the techy differences, Google will help though.