I don't think LS would do well. Going by how may people were at the LS show I saw last year, I don't think there is enough fanbase to make it profitable.
Though to me, theme isn't as important as playability/funfactor. Even the most absurd/bad themed pin with zero fanbase interested can be a great pin. Best example I can think of would be an Amish themed pin. Zero fan base interested in buying/playing it, but still could be cool... Hit the start button and it says "Thou art a sinner", the call outs for "Churn the Butter" mode could be epic, Barn Raising multiball, and a Rumspringa wizard mode. No outlanes, but instead "Shun lanes" and so forth could even get me to buy one. The theme sucks, but it's all in the execution and even a bad theme can still be fun if done well.
Even with that said, I can't see that Stern would think LS would be profitable overall. While I like LS, I think something more like a Snoop Dogg pin would be more profitable because he has a wider fanbase/likability and is still somewhat relevant (SD wouldn't be my kinda theme though personally, and any music themed pin that I don't like the band... I'm never buying one no matter how good it is. That to me, is the problem with music themed pins).