While you certainly can power other pedals with it, I never thought it was all that useful for that purpose. Again, if you're going to daisy chain anyway, you might as well use a 1spot. Just my opinion.
But otherwise the LS-2 can be used for a multitude of things. My old guitar player would often use it as an amp switcher. I've used it in the way that you're proposing, to switch loops, but before I got my Barge VFB-2 (and later
VB-jr) I used the LS-2 as a clean blend. If you set it to blend loops A and B and only have pedals in one loop, it will blend your clean signal with the effects. The only time I blended A & B with pedals in both loops was when I had two different envelope filters and wanted to try for a Bootsy kind of sound.
The only problem I see with your setup is that you won't really be able to use your octaver with your fuzz and filter. Yes, you can blend the two loops, but it won't sound the same as the OC-3 running into the Bassballs which is a cool sound.
But again, you just have to experiment and find what you like best.