Just an update;
Had some time today to mess around with the implementation a bit more today, and what i ended up with is just a simple batch file to suspend the Kodi.exe process while i'm in launchbox and resume it once i'm done with launchbox.
It's a very basic, quick and dirty work around, but it does exactly what i need it to.
I used the BigBox launcher plug in for xbmc/kodi to execute my batchfile, I hope the author won't mind me using it in this manner.
One question though, the kodi launcher add on leaves a launcher tray icon on my desktop after starting launchbox, it seems to want to stay there after i exit launchbox. Not sure if that is going to be a problem in the long run, or if i'm better off killing the process along with launchbox?
Anyways, i'm psyched that this all coming together so well. It's been a humongous PITA getting Kodi to serve as anything more than a fancy way of playing movies ever since Angelscry threw in the towel, so yeah, very impressed with the front-end here... will be transferring the install over to my HTPC after i hammer out a few more kinks ;-)