LFS is nice, but I think it seriously lacks one thing - namely, a packaging system of some sort. I've run it in the past, but unless something has changed, you'll probably run into problems sooner or later when you try to upgrade your system. (Unless you really grok Linux to begin with, I guess, but if did, you wouldn't need LFS to install your own Linux system from scratch, anyway).

And FWIW, a packaging system is not incompatible with the "roll your own" approach, either. :) I'm not sure if there's a similar distro that actually uses one, though.