Disappointed! We're using 2012 and have 2013 installed. Doesn't seem to be better at all. I like your idea of opening in Word. I am going to play around with that and see if there is an easy way to get rid of all of spaces. We need to get rid of the spaces and have a tab indent for the north/east. For just one of our projects, the report from LDD2004 with no spaces is 174 pages. We are not interested in doubling the number of pages and I am sure the county would prefer we minimize pages as well.
Update is that we are opening the file in Word and using Find/Replace to remove the extra paragraph marks (^p), then using similar method to add tabs to the beginning of north/east. I suppose this is a decent workaround until we are able to customize the reports using styles, which I would think would be an easy add to the software.