Zalman, I've made my opinions of the color space workflow in LR known elsewhere but....
I have no issues with the three options for color space encoding (in fact, if you tossed Adobe RGB (1998), I'd be OK but you might piss of some folks). Some actually feel ONLY ProPhoto should be used (you can move to a smaller space). For web work, if you automatically encoded into sRGB, for the time being, that be fine too. You'll take a lot of heat on this because folks feel they need the option for any RGB working space or even output color space.
I think and hope that eventually sRGB should go away but that's a few years off.
What I'd like to see however, at least in version one is parity with ACR behavior with respect to color numbers and histogram. I think the model Thomas has setup is pretty easy and flexible. A toggle somewhere (it could even be on the Histogram) where each of the three spaces I wish to use (sRGB, Adobe RGB (1998) or ProPhoto) can be selected and the Histogram AND color numbers (in either percentages which are only somewhat useful or better, 0-255) update to reflect the current options set. This is how ACR works and I think most users are happy with it.
Where LR seems to sway, and I'm not happy with this approach not having the same RGB numbers and Histogram displayed in LR as I'll eventually see in Photoshop after you render and encode the data. That you're not really showing the internal Linear gamma space is fine; people would get confused by that. Showing a gamma encoded space based on the color space selected while doing all the work in the bkgnd with Melissa RGB is fine. I just want the controls and read-out's I'm seeing in LR to match what I eventually get in Photoshop. Right now, the entire "hide the numbers, hide the real Histogram" rubs me the wrong way. The behavior doesn't match ACR which I think you guys are trying to do. All we need is a single popup menu or contextual menu that lists the three encoding color spaces. Tie that to the export or Open in External Application (that's what you gut). I'm even cool if you force everything into 16-bit (in fact you should for everything but perhaps sRGB). Or again, simply match the behavior or ACR and provide another popup for bit depth (or argue with Thomas that the next version of ACR tosses that for simplicity and just feeds 16-bit to Photoshop which I'd again be OK with).