Post fermentation, the difference in clarity between the top and bottom is just a reflection of the yeast having dropped out of the top, but still being in suspension in the bottom. The yeast will not affect specific gravity.
DME ages better than LME. LME oxidizes and darkens and picks up odd flavors like mewithstewpid said.
On the other hand, if you can get it fresh, LME is supposed to taste better than DME because it isn't processed as much.
You could make an American Blonde Ale. Use enough light DME to give you a 1.046 OG, enough bittering hops to give you 21 IBUs - something link Willamette would be good, and a clean American yeast - like US-05. Ferment in the mid- to upper-60s. That would make a nice lawnmower beer.
After chilling, I've started stirring up a whirlpool and leting the wort sit for 20 minute to get all of the break material to settle out away from the dip tube and have noticed significantly better clarity and easier transfer.
I think the other thing people talk about as an advantage is that...
Don't give up yet. I've got one of those. If you look at the middle of the spray end, there is a sliver disk that is a plain old faucet aerator. It has two slightly-flat sides on it that you can get a crescent wrench on and screw it out.
You should be able to fit a standard faucet-to-garden...
Did you do the protein rest? I've done that recipe with and without. Only gotten a stuck mash without the protein rest.
BTW, you don't need to grind flaked barley.
I cleared it by blowing back through my drain hose.
Technically it does, but it passivates by itself very, very quickly unless you've hit it with a torch. You're fine. If you do hit it with a torch, you can get it to repassivate with a little Bar Keepers Friend (oxalic acid). Great stuff.