I think with the music they aimed at good old "the Phantom can understand her in a way that Raoul can't cause they are both artists" and the Australian staging of the title song sorta hints at it, where you get the impression that this and not either of the men is her real passion. Except she never came off as someone for whom the music was the most important thing in the first musical? Though it would be interesting and they could have improved things if they developed this theme in LND.
LND IS a Raoul tragedy for me. It becomes so much stronger when Raoul is played in more sympathetic manner. But even then I just can't understand why tell this story at all. As it is, Raoul is made like this to make him less attractive and make the Phantom good in comparison. But if look at this from the point of Raoul being a sympathetic character and a central character and the Phantom being a jerk, what does this story serve for except maybe making Raoul and Meg more interesting characters? I surely love the theme of the loss of innocence and deterioration but what does it achieve here? If interpret LND as a Raoul tragedy, it kinda reminds me of those "whump" fics where authors make Raoul suffer because they just want to see him suffer beautifully.
By the way, apparently LND Raoul somewhat mirrors the biography of Gaston Leroux. He was born a rich privileged man but gambled/drank away his money and had to take writing as a job. I wonder if ALW was inspired by it when writing LND. Well, maybe Raoul will become an author of strange mistery novels to cope with his trauma? :D He certainly already has some material for this.