I think a key phrase here is "looking at". Schools can look at all your scores (unlike, I think, the SAT) but that doesn't mean they all treat them the same way. Even a school that averages might say, wow, this guy jumped 9 points, maybe something weird happened to him in that first exam. (I think you could write an addendum explaining that, maybe?)
This is just about right. In the end, the worse score will be there, and if LSN is any indication, it will be considered to some extent by most of the best schools. However, it's not really the average that they're going to be considering.
The SAT comparison, while not technically correct, is actually a good one - many undergraduate admissions departments have their staff pre-filter all the data before it goes into an applicant's file, and part of this process is just keeping in the highest subscores on the SAT. From what I can tell, most law schools don't do this.