Hello James,
I exclusively use AutoCAD LT for making Dynamic blocks. I have made about 30 and all have considerably different levels of complexity. I have not ran into a single limitation with LT. I am mostly creating schematics and control panel component drawings that are able to be rotated, arrayed, and have different visibility states. I suggest you watch both the Webinars on Dynamic Blocks. VStudley has a lot of good information under the Dynamic Block Forum. Everything can be found here: https://forums.autodesk.com/t5/dynamic-blocks/dynamic-blocks-showcase-share-your-favorite-dynamic-bl...
I will attach a few images of the tool palettes that contain these blocks. Every as aspect of the work below was done in LT. So in conclusion, there is nothing that should hold you back from creating Dynamic blocks even if you are only using LT. I hope this helps you and I hope you start doing Dynamic Blocks. They are probably one of the greatest tools in the program.
