You propose doing it right, The "fooling around" is with compliant linkages, injecting mass into the calculation, and maybe other indirect inferences. What matters is the output of the LVDT electronics as a function of position -- I assume that "L" in "LVDT" governs here -- and frequency. I meant to amplify your comment, not to dissent.
With the sweep initiated by the index, the time delay and period can be read directly, from which frequency and phase are easily derived.
I'm curious too. The only delay I've noticed comes from the ripple filter at the detector output. I already reported how I avoided that by using quadrature drive to a pair of matched detectors (bless MiniCircuits) and taking as output sqrt(sin^2 + cos^2). I suspect that the main result will be the certain knowledge that the LVDT time constant doesn't noticeably affect system performance.
There must be a limit to the frequency response. I can't see how to get sub-millisecond response with 400 Hz excitation even with the quadrature detectors. In any case, imbalance will give false readings around the null position. (That's one reason for a synchronous detector in the first place. The quadrature detector has all the error, so the LVDT performs linearly only away from center. For most applications, the filter delay is preferable.)
Jerry