Hi Mark,
I'm not sure if by "story" you mean "explanation" or mere "description"... If the former, we're not on the same page: LSU explanations don't make much sense when viewed sequentially in 3+1D -- they require 4D "stories". But I'll assume you're merely using "story" to refer to my hoped-for-3+1D representation of what is happening between measurements.
As for whether giving up NS for LS means that *nothing* can be conserved instant-by-instant... That seems way too strong a conclusion. After all, there are aspects of Noether's theorems that provide conservation-type-rules (from the symmetries of the Lagrangian) even if the Euler-Lagrange equations are not strictly adhered to. There's a nice paper by Harvey Brown to this effect...
If you ask me about ontology, "what is being mediated", my best guess right now is the classical Lagrangian density itself, and the classical fields that comprise it. (Bearing in mind that those fields need not strictly adhere to the Euler-Lagrange equations, just as single-photon experiments obviously don't adhere to Maxwell's equations.)
On your last point, perhaps the problem is what you mean by "story" (see first paragraph above). Otherwise, I think we're on the same page. Also, note that LS approaches can give meaning to *new* instant-by-instant constraints, that don't make any sense in an NS framework -- such as enforcing a zero total Lagrangian density throughout spacetime (to pick a not-so-offhand example... :-).
Cheers, Ken