At the Sakai Conference last week, Steve Githens spent a little over a day and built simple prototype Basic LTI support for EitherPad.
In his blog post:
he describes what he has done and gives a nice screen cast demonstrating Etherpad in Sakai. It is awesome work. I think that Etherpad is the coolest piece of software to be integrated into an LMS using Basic LTI. And in particular, it would be really difficult to integrate Etherpad into an LMS directly as it is pretty specialized software.
I add screenshots of Etherpad running in Moodle and Blackboard below: