I think the problem of choice is that it takes so much time to develop and field systems for conventional war that you risk losing that capability by concentrating too much, on LIC. If the need arises for heavy armor divisions and you don't have them, your not going to have them for years. The level of training and sophistication of equipment precludes the rapid military buildup that we would associate with WW2. The Ford plants for example, simply aren't going to ever be able to tool up to produce M1's. We have talked about LIC for many many years and yet very little progress has been made in terms of training and equipment at the troop/unit level as evidenced in Iraq. I think the problem is primarily political on both the civilian and military side.
Interesting points regarding the Guard/Reserve components. I see another problem spawned by the political process. First consider the command of both organizations. For the Guard you have the Guard Bureau, and then you have a Guard command for 52 states! Within each of those commands are sub commands (State Aviation for example). Most of these commands/units are parts of a whole that is dependent upon another state. A problem is, Guard units can not deploy without approval of that states governor. That's alot of politics going on. Never mind that the Army favors the Guard over the Reserves because of partial state funding, they get more bang for their buck.
In the mid 90's there was a major reorganization of the Guard and Reserve components. There were of course, folks on all sides of the fence that were against what was being done however through some quirk in who can do what and how this entire and major change was made without congressional approval or oversight simply because it wasn't required. When regular army division or major base closes, the personnel are simply reassigned to other units and locations. That's fine because AD folks move every 3 or 4 years anyway and since they are AD their job, career etc go with them. When a Guard or Reserve unit is deactivated, to be reactivated elsewhere those personnel often have to reclass in a new MOS or just hang up the towel. Not that many folks have the choice to follow a part time job that pays hundreds of dollars a month 500 miles away. You lose a combat capable organization and replace it with a new organization that can't even pass an internal ARTP because it's lacking MTOE and MOSQ'd soldiers. In other words, these units need to be more or less etched in stone because you can't just relocate them or the personnel.
Now more importantly, during the restructuring of the 90's the Reserves gave up 98% of the combat arms units/job which went to the Guard. The Reserve in turn absorbed support type units from the Guard. To me this is bass ackwards because AH-64's and M1's are useless for disaster relief. The types of units a governor "should" have avaialable to aid the citizens of it's state now belong to...the Reserves....which the governor can't control, activate or utilize. The Guard are supposed to be modern day Minutemen. I'm not convinced we will EVER see foreign armor rolling into Chicago so, why would the Guard need to be prepared for that. I think getting back to the Minuteman concept, you could incorporate those LIC forces into the Guard and let's face it, those types of units would be much more usefull for localized disaster relief or serious civil unrest. It would be much better to have LIC trained and equipped "locals" in these situations versus troops who were primarly trained to close and kill with a conventional enemy. Put the combat arms edge back on the Reserves, those soldiers are always deployable without regard to the political process, they even mobilize individual soldiers to fill shortages in critical skill MOS's. I like where the OP was going, I just think it needs to be Reserve component and not Guard.