CoE property is on the same level as a Military base, the land controlled by the Military is subject to different regulations and rules than land controlled by what we're used to knowing. Think of LBL as a big house built on a walking trail, the owners of that house know that a walking trail vital to thousands of peoples daily lives depend on walking through their house, but, it is their house still, and they can dictate what is said or done in that house. We don't like it, and there are elements on the state, and federal level that are workign to get things changed, but until then, you just hunker down and deal with it.
I took a vacation last year in that area, I used the firing range within LBL, but I made darn sure to keep everything locked up nice and tight. You don't screw with federal things, no matter if you like it or not, if you want it changed, get involved in the community.
Its like how you can Open Carry at Cave Run Lake, but you cannot do so within a certain distance of, or in the Spill-way, or on the dam itself, or in or on the fish hatchery grounds, as its controlled and owned by the CoE.
You can always drive around the lake if you wanted to, you don't have to drive through LBL to get to where you want to go, and you don't have to use the beaches at LBL, you could go to any other lakes or find a sand bar in the two major rivers. I know it sucks, but its all about what being a "Law-Abiding Citizen" is about, we may not like the laws, but we have to abide by them, atleast until they can get repealed.