Interesting. Again, though, I'm inclined to disagree. The IR program is certainly more theory-based, if only because of the core course. But, incidentally, that doesn't mean that it's less reality-based, as I have found the theories to be quite useful in my work after LSE. Even during it, it was much easier to frame debates and write the exams through the theoretical perspectives, and many friends in courses like history of IR and comparative asked for my materials on the theory for that reason. It is, after all, the stuff that tends to stick with you and change relatively less as time goes on.
Of course, it all depends on what you're looking for and what mix of degrees/experience you have. And naturally, where you're going. And in that, I would say there are some problems in the points people have made. When I said that GP is more development based and IR more government based, it's because those bodies tend to reflect different views of international relations. On balance, development NGOs tend to look at transnational issues more, although most still run things through state-based systems (funding mechanisms, M&E, etc.). Similarly, governments rather naturally think they're the major players in the game. IPE is merely reflective of major business practices and approaches (my girlfriend is doing her MBA, and I've worked in the private sector before, so I say this with some certainty).
So, it very much depends on where you want to go. I will say, though, that LSE's stellar reputation in IR is certainly deserved, and in part because it was one of the early pioneers the scholar-practitioner/advisor idea. And towards that end, while it's tempting to say that transnational issues are increasingly driving the world, I would caution that in my experience, the state-centered system is still here to stay for a good long time.
Oh, for the Ph.D., I wouldn't consider that a huge issue. A specific Ph.D. in International Relations? Yes, definitely less so. International Relations as a concentration in a politics Ph.D.? It abounds, and the LSE IR degree is looked upon highly. I originally looked at the MSc as the endpoint. Now, I'm applying for Ph.D.s (in the U.S., however), and I'm not concerned (nor are any of the people I have talked to) that the LSE degree is in any way a hindrance.