I have never done this, but from what I have read it seems wrong to dismiss a lease purchase as having "no upside" for the seller.
I think the idea is to structure the lease option agreement so you have a premium on the purchase price, the purchase option expires after one year, the option deposit is nonrefundable, and rent is over market price (with the excess going toward the purchase price). Add in a few extra bonuses, like a) you avoid paying realtor fees on the sale, b) tenants are responsible for basic maintenance, and c) since they tend to view themselves as owners, tenants treat your property with more respect, and it seems like there can be plenty of upside.
The above is all theory as far as I'm concerned, because as I mentioned, I've never done one of these, myself. But that's the way it's supposed to work, I think!
Tryan, if your tenant had walked, wouldn't he have forfeited his option deposit and all the "extra" rent money?