It does. The crossover acts like a low pass for the sub while the speakers play full range in stereo. LPF does nothing, again, in stereo. You can definitely hear the difference when you switch the crossover setting tho.
Yup, I'm still messing with it, lol. I found that it actually does sound pretty good in my room with my speakers full range, LFE + Mains, and a 60 hz crossover. Whether it's "better" is open for debate, but it's not a huge difference from what I can tell in the time it takes to switch between modes, which is fairly significant for auditory memory.
It does seem thicker with LFE + Mains, but not necessarily in a good way. I might be detecting a little muddiness where the speakers and subs are stepping on each other. Honestly it's hard to tell a really significant difference, which really surprised me. It sounds great with LFE only, speakers small with a 80 hz crossover tho, and I know that's where it measures really well so that's how I'm running it. Next time I bust out the mic I might take a few sweep with LFE + Mains and see what it looks like.