LFE as you indicated, low frequency effect is where the mixers usually place the low level special effect sound, cannon blasts, explosions, etc.
If you play the Telarc 1812 overture, the cannon blasts will come from there if set up correctly
Instrument lows usually come from the other channels if you have them set to large.
2. When you speak of listening to your system (HT, e.g.) and you say it was set to "reference level", what does that mean? The Avia disk says that setting each speaker to "reference level" is done at 85db. When you listen to your HT at "reference level" is it with the entire system at that 85db level or each speaker pouring out an average (I suppose) of 85db at your favorite listening spot? On the other hand, most speaker specs are rated at around 90db +/- a few, at 1 meter (should one assume anechoically?). Does that have some relevance to "reference level"? (I told you these were likely dumb questions.)
Well, it is like this. When you use a test disk, Avia has a signal level, referenced to full scale level that a DVD will accept or set by standards. Another test disc may have it at a lower level for sure as they want you to level match at 75dB spl.
However, these levels are not important. What matters is where the master volume control is set at, not the individual channel trim pots, when you level match the speakers. Now, if on playback of a movie you set your master volume control to this position, you are at reference level. If the DVD has a full scale audio signal, your speakers will reach 105 dB spl in that channel. This is reference level for max loudness at the seats, minus the sub. that is 115 dB spl max. This is so because your hearing volume in the low band is poor, not as sensitive to it as in mid band.
4. Finally, what does it mean when folks like Axiom say their speakers perform down to 35hz +3/-8db?!! Is that an attempt at deception or is it some obscure but valid measurement?
Well, not deception but not very useful. This is the response in an anechoic chamber to frequency response with a fixed input signal of all frequencies. But, this will not tell you what that response level is as it may not be able to reproduce 35Hz at a level that is usefully audible. Hence, it is worthless.
If you are interested in speaker response, check out reviews by Sound & Vision, although they don't do many. if Tom Nousaine's name on the charts, or David Ranada, you can bank on it.
Stereopile does decent measurmetns on speakers too. That is harder to fake as another lab can confirm it or refute it. Certainly different from a biased, subjective evaluation of that speaker
Thanks for your increasingly patient tolerance of us electronically challenged folks.