To be clear, they would most likely use the LCM on the LSAC Report for a school they have very little experience with or knowledge of, to gain some intelligence on that school. When I first started admissions I had never heard of Transylvania University in Lexington KY and the schools median LSAT was noteworthy such that we started recruiting there.
In the big picture of admissions, I think everyone is correct that this is a pretty minor statistic. At schools where there are faculty admissions committees, though, this might come into play a bit more.
Ah thanks for clearing that up!