The LTS model puts Canonical in a bit of a pickle strategically.
If Canonical really was competing with Red Hat on server iron, LTS made some sense.
But for a push into mobile? Working with OEMs who are pushing new devices into the retail market every year? Competing with Android which is revving out production capable releases on a yearly basis.
I really don't think mobile OEMs are going to want to sit on LTS releases.
I realise that Canonical is gearing up for the next LTS release to be very important for their mobile push...but then what. That LTS release is going to show its age within a year and OEMs moving new product will expect interface enhancements to keep showing up. I don't think the LTS model is geared to deliver what OEMs need.
We sort of saw this happen in their netbook push. OEMs didn't sit on the LTS release.