Yeah, this feature is amazing. Before you had to export different versions of the model with a naming scheme. The problem with this was that it was quite time consuming. Now, all you do is load your model up in MED, automatically create your 3 different LOD's, save, and it automatically works in the engine! It's all stored in one model file. The LOD generation in MED also seems to work very good from my tests, and I found the workflow to be surprising easy for managing your LOD steps per a model. I think this is a pretty big Pro only feature and probably could sway some people who use LOD a fair bit to upgrade.
@Ello - Download the latest version of A7, it should work.