I have used both of these products for a number of months, so I can give my two cents on why I ultimately choose WSUS Package Publisher.
- Local Updates Publisher (LUP) does not currently support WSUS hosted on a Windows 2012 server.
- LUP has not been seriously updated since Oct 2011.
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LUP tool has crashed on me multiple times while trying to approve updates / revise them.
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WSUS Package Publisher (WPP) does support WSUS hosted Windows 2012 server.
- The WPP developer is very responsive to issues / requests from users.
- WPP has been updated many times since I have started using it. Look at the history to see.
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WPP adds a lot of "right-click" features on computers to get them to reboot, detect now, report now, etc.