We have equivalent sized frames (his is the 56 cm LHT and mine is the "effective" size 56 Saga). The headtubes look pretty damn close in size, but I busted out the tape measure to be sure. The headtube on the Saga is 19.5 cm and the LHT is 18.5 cm, so the Saga is actually a tad longer. The angles look identical, but I'm not positive about that. We both have a stack of spacers for more upright riding (I have lower back problems so I don't like a super aggressive riding position). My seat is probably about 1 cm below my bars and I think my stem is 80 mm at a slight upward angle. I haven't encountered any back pain with this setup. Looking at the two bikes side by side, though, I don't think the Saga is significantly more upright than the LHT. It kind of depends on the setup.
As for the welds and paintjob (at least visually), the Saga takes it hands down. The LHT has a nice enough paint job but the welds show a bit of the "toothpaste effect". The welds on the Saga look super clean and the paint is nice and sturdy. I helped the mechanic machine the threads and what not, and I could tell just by sanding the edges of the braze-ons that the paint job is serious. It seems like there are two significant layers of paint, with a lighter blue primer or something under the navy bluish exterior. I've heard from other Saga owners that the paint holds up well. Then again, I have friends with LHTs with a few thousand miles on them and the paint still looks really good.
In terms of attractiveness, the Saga is easily the better looking frame. My LBS mech says Saga makes better frames than Surly, but I can't say for sure. I think they are pretty equivalent. I just like the way my paint and welds look a lot better
I'll pull out the digital camera sometime in the next day or two and see if I can show you a visual comparison of the two.
I bought the frame from Outdoor Outfitters and had it in less than a week. The steering tube is uncut on all new frame/fork sets, as far as I know.