NOt sure I have much in the way of recommendadtions, but I gotta ask - how are you measuring effectiveness?
No, the LSD will never lock up solid, but neither should it let you do a 'one wheel peal'.
If it is acting like an open diff, then definately look at a rebuild, should be much cheaper than replacing the diff entirely. Then too, if you decide to change out the lsd for a locker then you can throw the 'recently rebuild lsd with very low miles' on kijiji and help recoup the cost of the new diff...
Perhaps start with a simple fluid change with high quality stuff and the proper friction modifier to see if it performs more to your expectations.
As far as an e-locker goes, I have been toying with the idea of putting one in my front diff. Unfortunately, the list of higher priority fixes/upgrades is quite long before I seriously look at that myself.
