James

Could you explain what each are?

Structured RP: Roleplay that has mechanical benefit behind it. Examples of this would be tabletop role-playing games where roleplay exists and allows mechanics which show what you are capable of. In Dungeons and Dragons, lets say your character has the ability to use magic missile as a wizard. This does an amount of damage based on a hierarchy which is earned through experience and time as well as player choice. Turns are set in structure in order to create a working equivalence based on psuedo-randomness through dice. This imparted math allows more unbiased and percentage based skill on factors gained through play rather than imparted through word of mouth.  

Free-Form RP: This is what LOTC has. It is strictly roleplay with no math or non-arbitrary based system. While a system is inherent with things like magic, there are multiple loop-holes created to pass this and things are decided by roleplay which is then argued between the constituents. This player-confict which is the biggest downside to free-form is within lotc is revolved by PvP in a majority of cases. You will have people who were objectively better at something in both time+experience, however will still lose due to a difference of opinion. Instead of logos, there is pathos. While some people try to maintain logos within a conflict, this quickly devolves due to two vastly different opinions based on their own real-life experience which its only benefit to free-form is a falsely-random integer included which most of the time will end with the two neutral parties duking out with pvp. The main difference between this and something like DnD or MnM, or any other tabletop is that you have the roleplay thereof with a good game master, and a non-partisan representation of the fight due to actual character-skill rather than factors involving the person. Free-form is needlessly pedantic and creates un-necessary hostility. 

I appreciate you taking the time to write everything out so clearly, I suppose as long as a structured rp doesn’t make it so a person putting a little flair in their emote is taken to be powergaming, it’d be something I’d like to see.
An example of something that annoys me a bit- (Nothing against orcs, they’re just the best example I can think of) I’ve seen more than a few people treat Orcs in combat roleplay like they’re impossible things to defeat in fair fights, while others tend to treat them like people whose only advantage is being slightly taller. 
I guess in short, I don’t really wanna change your mind, Structured rp sounds like it could be great so long as it didn’t put a hamper on creative writing.