In that case, my logic tells me that a faster LC040 running at, say, 40 MHz, is more beneficial than a full 040 running at the stock 33 MHz or 25 MHz, yes?
It depends on what you're doing.
Truth be told, I have yet to see significant evidence that
most people are doing high end work with their vintage Macs, so for most people, a 40MHz 'LC040 would be more beneficial than a 33MHz Full040.
How about both? A full 68040 overclocked?
The only real need for this is typically bragging rights. The handful of people I know doing work on their upgraded or overclocked '040s don't post about it for the sake of bragging that they have, of all things, an FPU, or that they've managed an overclock.
particularly in the form factor needed for the 540's CPU card.
This is the real kicker for this particular thread - it's not like we're talking about an 800/850/950 here.
The biggest gotcha, of course, is that of course the PowerBook 550 did have a full 040, and I don't know if there are any heat differences between the full and "LC" versions of the 040. If not, then it doesn't really matter, and any given form factor either "can" or "can't" cool an 040 at a given speed, regardless of what type it is. (but, again, that depends.)