Like Michael, I, too, was struck by how much LnC spoke about Larry as "Luthor" and clearly made no distinction between Larry and Lex. I think, given their individual and joint histories, this is not surprising - I would guess neither of them have had to go through much that was as painful as the things they went through at the hands of Lex.
I do hope, though, that they get some clarity back and call Kiley to talk it over like rational adults. Right now, I wouldn't blame Kiley for choosing Larry all the way - at least he isn't asking her to choose between them. This is probably my stubbornness coming through, but whenever I've been asked to choose between two people, I always choose the person not asking me to choose.