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I need some clarity

Well, I feel dumb asking, but I have looked everywhere I can think of (maybe I'm just not looking in the right places) and I am still not completely clear on what exactly LevelASM does.

From what I can gather, I think it allows you to use particular ASM patches on a single level, rather than a whole hack (like classic goombas on only one stage).

Is this anywhere near correct? If not, what would it be? If so, what would be some other examples?
faithless pile of filth
LevelASM isn't exactly for something like that, it basically is like you can have this 1 ASM Gimmick for this one level and another for another level (eg. Double Jump for 1 level and On/Off switch changes every few seconds for another level or Disable Jump/Spin-Jump)

Edit: HDMA for your level is another example.
I change my layout every 4-5 months
Yeah. LevelASM allows you to use ASM routines on a per-level basis.
Thus, it wouldn't work with patches, but it could be used in stead of Generators.