I've already discovered rp-l2tpd. It does have a much cleaner code base and was easier to get going. However there's some things I don't like about it as well.
I also recently stumbled across openl2tp, http://opensource.katalix.com/openl2tp which appears to be a new project just released as open source. It looks like a very complete l2tp implementation, and supposedly also uses kernel modules for all the data channel processing. However I was unable to get it running yet. As it involves compiling kernel modules and stuff it is much more challenging to build and configure. But it looks extremely interesting. I'm still willing to do some development/documentation work. -- Deron Meranda