Zheng:
I consider state and fabric to be equivalent. Each LSH involves some state at the LSRs in either end, therefore the cumulative number of LSHs in the network is indicative of the amount of state involved.
Dave;
The totoal number of LSHs is not an important metric - it is the number of state you keep in each box that matters. In other word, the max size of the table in your router is the issue here.
Cheers
Zheng