@stan2004 .....
Your explanation is absolutely awesome! As my Wife likes to say, "I always get lost in the corn flakes!" meaning I'm buried in the details (I was a programmer, she was a business analyst. I did the detail coding, she design business systems to replace/enhance business processes).
The last piece of the picture I never quite understood (especially in this case) is what about the negative side of the circuit?
An incandescent bulb gets its negative volts from the switch frame; which gets its negative volts from the outside rails (I detailed this for my own clarity).
When substituting the incandescent bulb with a LED, the LED now gets its positive from the half wave AC coming from the diode (in your example, the positive half). Would there be a "clash" between the half wave AC coming into the positive on the LED and the negative coming from the switch frame? Or does this become a non-issue because the positive side of the LED is only getting the positive half wave AC from the diode?