I know I'm coming into this late in the day. It's not something that really affects me. However I do find the whole thing very odd.
Surely, from a marketing point, one of the selling points of a CGS (or NGC, PCGS etc..) entombment is that, should you decide to sell your coin, potential buyers can then find it on the grading service's database, confirm it's the same coin (and have the possibility of inspecting photographs of it) before committing their cash? Now that is surely impractical, unless you're a dealer. For a casual occasional buyer, paying £50 to validate a coin seems daft.
To me, what LCGS seem to have done is made their service much less attractive an option. If you want a database of coins, you'd surely be better off photographing them yourself. Protection? The afore-mentioned Quadrum capsules sound ideal. Certification and grading? NGC or PCGS are better known and grade to an internationally understood scale.
Even if their current customers are the loyalest of the loyal, I just don't get how CGS think this is going to be viable.