Do most of the players/clubs/tournaments out there play enforcing the LoME allies rules when not playing story scenarios? We are putting together a new club here and still figuring things out, and it makes sense to me that if you're going to play points-based battle scenarios like those in the main rulebook, that players should use LoME allies restrictions when making armies. How do you guys do it?

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Many players will not be too fussed about LOME legality but if you're playing competitively or in a tournament then you often have to stick to LoME. If it's just a club you're starting friendly kind of style I wouldn't worry too much about LoME.

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"War does not determine who is right, only who is left."
- Bertrand Russel

It's a good reason to, as it does help with unthemed powergaming options. I can't think of any reason not to adopt LoME for your club - we do.

We usually do this too, if only because the Legions rules help ensure a balanced game.

The Legions of Middle-Earth book allows you to create themed lsits that don't seem stupid. I suppose that you could always combine a races lists, so that all Rohan may be used, etc. If that were the case, you'd definitely have to disallow having characters that weren't alive at the same time being in the same army and possibly disallow allying (other than between two players)...

I would suggest that you use LoME and if you think it'll cost too much, have the group buy it and just refer to it when making lists (maybe making notes or legal photocopies for when they're not at the club, but only for club use).