It is a great way to work with disk resources and is very similar to Novell's Network Storage Services (NSS) volumes (minus the very useful 'salvage' tool). To get around the lack of a salvage tool you can create regular snapshots of your data. These snapshots are like CVS branches in that rather than creating a separate copy of the data a snapshot tracks what has changed on disk from a particular time.
For example to create a snapshot of your 'data' volume you perform the following command (Note: you must have the dm-snapshot module loaded into the kernel):
lvcreate -L10G -s -n salvage /dev/system/data
This creates a snapshot of a the data volume (in the system LVM group) and names it salvage. The -L10G command makes the snapshot 10gig in size which means that 10gig of changes can take place within the snapshot before it is marked invalid.
vgscan
(This identified the missing physical disk)
vgreduce --removemissing --test system
(this tested the task of removing the disk to make sure things would go okay)
vgreduce --removemissing system
(Remove the missing disk from the volume group)
Apart from this little adventure I am having no problems running LVM and would recommend it to anyone who needs the ability to dynamically change their disks (or create snapshots for backup). There are some excellent tools out there for SuSE (Yast) and Red Hat (Disk Druid).
This is a good posting on troubleshooting LVM.
Here's a link to the LVM howto which details how to create groups and snapshots.