LPD is huge logistic asset in this case. Somewhat large&vulnerable for comfort, but nevertheless extremely useful.
Taiwan itself is procuring one, for a reason.
All LHD functions in strait can be performed from mainland and isles: it's not especially far. Perhaps most importantly, mainland reliably won't get sunk.
What makes you think PLAN LHD operations will be limited to the straits during a war scenario?
Even for LPDs, operating in the straits is not a fantastic idea.
All this big ships are big targets reasoning is just self serving and circular. Take that to its logical conclusion and your just end up building a massive FAC swarm.
Yes, LHDs are high value assets, but then so are LPDs and carriers. You don't not really want to invest in such large ships until you have all the other assets in place to be able to adequately defend them.
Even 054A FFGs, 052D DDGs and 055 CGs are very high value assets. Are they also too big to risk? Should the entire PLAN just stay in port during a war to avoid getting sunk?
Notice a general trend in PLAN ship developments? They are getting big and more valuable.
Its really two sides of the same coin. Generally, the bigger and higher value an asset, the more capabilities of brings to the table. Loosing one would hurt, but having those in the fleet makes it materially less likely an enemy would be able to kill any of your ships, which your ships have a much higher chance of killing them.
In that way, LHDs are like an investment (more so than LPDs and more like carriers). They cost a lot of money and represents a lot of eggs in one basket, but they also bring significant new capabilities to the table that other assets could not provide as effectively or at all.
The biggest advantages LHDs brings to a PLAN fleet are its helicopters, which can perfectly complement the PLAN's large and growing ASW 056 fleet, thereby adding significant value to all those 056s, as well as materially boosting the ASW capabilities of the PLAN fleet, and adding a layer of ASW protecting for all components of the fleet from the 056s themselves upwards.
Other than ASW, an LHD's airwing can also mount more traditional helicopter-borne air assaults and/or deploy wings of gunships to hunt and destroy enemy forces and defensive installations.
We need to remember that the first shots of Desert Storm were fired by AH64s, who snuck in close and cleared out Iraqi early warning radar to help F117s penetrate Iraqi air defences.
Taiwan's traditional defensive posture is to face a threat from their west, meaning their high value assets are placed closer to the east coast.
Attack helicopters and air inserted special forces teams would pose a serious threat to those assets. At a minimal, it would force Taiwan to redeploy forces to guard against potential attack.
Having ASW screens east of Taiwan will protect all PLA landing assets behind them from enemy sub attack. That brings a lot of piece of mind.