Hi Karl

 > I am hoping to use Heiko's latex-tds package to update TeX Live, instead
 > of starting from the original files, because it seems that
 > (a) he did the same thing that the TL scripts do, only better;
 > (b) he's provided improved pdfs;
 > (c) it's that much less work for me :).
 > Does anyone see a problem with my going this route for TL?

the LPPL requires that you distribute a Work complete but it allows you to do
rearrangements to make it production ready (distribute a compiled Work)
provided that you do that in a way the recipient could have done it if he or
she had started from the original.

given that we assume that this is the case (and latex-tds was procduced
exactly for that purpose) I see no problem at all with this approach