Good description Marko.
The primary reason for doing work in LAB mode is to avoid applying certain adjustments to the 2 color channels. This is the best routine to take....but not in 8 bit mode. Converting to LAB mode in 16 bit is fine. While still destructive, the change in color and luminosity gamuts and tonality will be moot in 16 bit mode as there is more than sufficient data to avoid problems.
Converting to LAB is better than just using the Edit/Fade/Luminosity commands. USM then using fade luminosity produces DIFFERENT results than sharpening the L channel in LAB mode with the same amount of USM.
The reason is that L channel sharpening will only detect edges of different luminosity. Sharpening the colour image then fading luminosity will prevent colour shifts BUT sharpening will have occured along edges with different colours even if they are the same luminosity. The difference is minor, but it can be detectable in print.
Doing this in 8 bit mode is just asking for problems.
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