I am pretty sure that the problem was the 24-bit memory addressing...that you can turn on or off in the Memory Control Panel. I remember (and now I am 40, memory is getting dicey) turning that on and off allowed me to recognize more memory.I thought the LC and LCII can only recognise 10 MB anyway? I think that is one of the reasons many think of these two as "crippled".
As for the IIe emulation, yes, that would be cool, but you'd have to be lucky to find an LC that came with the card, or be willing to pay eBay prices for one
I got an Apple IIe card from a list pretty cheap...my biggest problem is, I use the Dvorak keyboard layout, which the Apple IIe card won't recognize.
I figured out a solution I have yet to try...I have an AlphaSmart Pro that will let you type in Dvorak as a keyboard, and the computer will recognize it correctly. I'm starting to get off topic.
LC's are great, it was just they were slow, and had a slow data bus...but they were great consumer computers!