That behavior sounds right on target, Bob.
Technically "LFE" refers only to the .1 channel of a multichannel track (the "subwoofer" channel). This data goes to the sub only, unless of course the sub is disabled in the receiver's setup - in which case the LFE channel goes to the mains (which must be set to large if there's no sub present) when there is an LFE channel.
John's question mainly relates to what happens to redirected bass (not LFE) from center and surroud speakers when there is both a subwoofer and large front speakers.