That's what I started off doing, but I found that the other features of the snow shader were still enabled in the inis and seemed to cause problems with LOD generation for my mountains. I could disable them temporarily and then renable...have not tried that yet.
I might be able to renable most of them with a more traditional approach to mountain textures. But snow rim lighting and sparkle seem to look bad no matter I do. Not sure about AO on snow. I'm mostly using Fluffy Snow and NVT Obsidian for now. The projected textures might not hurt to remain at default settings.
Also will be attempting 3D LODs with EVT LE with ported esp, but that's DynDOLOD. Been averaging a fresh install every week until I can get everything right.
Any such Skyrim INI setting are inconsequential for LOD generation. LOD generation just uses the textures from the load order as is, unless you use xLODGen settings to change brightness etc.
The only important INI setting is the sResourceArchiveList that points to the Meshes BSA which contains the lodsettings files which are needed to fill the worldspaces list for example.
Object LOD mountains make use of LOD snow/ash shaders, which are applied in the game. The snow/ash shaders are not changed by xLODGen/DynDOLOD