LFS is a book full of instructions to make your own distribution - it gives you enough information to compile and install a very (very very) basic system, and BLFS gives you some help moving on from there if you need it.
A distribution, on the other hand, is put out by people who have usually done all of that, as well as packaged up hundreds of different pieces of software to (ostensibly) make things easier for you. They've imposed their own particular design decisions on the setup to a) make things easier for the user and b) make support easier for them.
LFS is not too much work for one person to handle... I am about to go that way again, to try creating a system that doesn't have any legacy crap lying around. I expect it will be an adventure... making and supporting a distribution for thousands of users, now that's a task for a team