Other advantages
IMC, there is a player using a home brew race which is Large with a ECL 4. It became evident that while Large isn't that great up front, certain feats and abilities gained later in the character's career are more advantageous to a Large character than to a Medium.
Like Great Cleave and Combat Reflexes. With reach, a two-handed sword and power attacking against light to medium armored foes, this guy could pretty much wade through an army.
Add in Large-and-in-Charge, or the dreaded Spiked Chain + Large combo, and it becomes apparent there are situations where Large works really, really well - but they don't come up all the time for all characters.
On the other hand, we did notice that Large creatures can be at a bit of a disadvantage when fighting in close quarters - like a building designed by medium characters. Indoors, a Large character often finds himself in situations where the "squeeze" rule (PHB, page 148) comes into play, meaning the character only gets 1/2 movement, and takes a -4 to hit and AC.
Not an argument for or against Large = +1 LA; just some thoughts.