Short answer: cheap LPVOs are easier on the eyes than cheap MPVOs. I would agree that LPVOs can hide bad glass unless fully zoomed into the target. Curiously enough, I notice the distortion/tunneling of buget LPVOs at the 1x setting as well, so I feel that you get bad optical quality at the extremes. True 1x just doesn't happen with cheap scopes, and I think the tendency for piggyback red dots on LPVOs is a manifestation of the fact that users can't get behind their 1x quickly/comfortably. So instead we use a red dot for true 1x and then keep the LPVO in the middle of it's power range. If you are buying an LPVO thinking you can dabble in long-range shooting and stack impacts one on top of another, you will be sorely disappointed even with 8x or 10x.
Obviously, if you debating betwen LPVOs and MPVOs, you are working towards some new goal with your rifle. It is important to decide what you want to achieve, do you have a specific goal in mind? Or are you trying to stretch your rifle's capabilities in one direction by sacrificing capabilities in another direction?
I think LPVOs lend towards more accurate shot placement/PID, but I don't buy into the idea that an LPVO allows a GPR to be used for precision shooting. To accomplish that, you should opt for an MPVO.