Just to set some facts right, if you don't mind, dear Rachfan:
ORTF, the french radio, developed the idea to mimic the distance between our ears: hence the mic capsules are placed 17cm apart at a 110 degree angle outwards, which is also not really a variant of XY.
(the purpose of XY is to have the capsules at the same spot, variants of this are Blumlein and M/S)
Neither XY nor any other set-up specifies any particular distance to the source. It could only be said about the "Decca-tree", which was specifically conceived with a large ensemble, like an orchestra, in mind. But then the distance was rather left to right, and rather the size of the source, not the distance to it.
No set-up is more effective with any particular style of music. Actually, it's only when you want to record a soloist or an ensemble "live" that you really try to record in stereo. For all other purposes they record separate tracks in mono, artificially made into stereo later with the help of a mixing console.
Interesting to note is that Mr Blumlein, mentioned above, gave us many of these theories, in the 1930's. But it wasn't music that he had in mind; it was sound for films. He basically wanted the sound to correspond to the scene: if someone was walking from left to right, the sound should do the same. Blumlein was an engineer and an inventor with many patents to his name. I'm just trying to illustrate how neither he nor anyone else thought of any particular style of music, distance or anything else when these theories were worked out.
Similarly, Cardiod, omni, figure-of-eight, hyper-cardioid don't require a specific distance to source.
The first mics were omni-directional, or figure-of-eight (ribbon microphones). Then they figured out how to acoustically make the capsule directional by building little valves behind it. Then they figured out how to put two directional (cardioid) capsules in the same microphone and electronically combine them back to omni, or figure-of-eight. That became the "multi-pattern microphone".
However, the ideas were based on solving logistical problems, like how to get rid of unwanted sound from anywhere but the front of the mic, not, again, thinking about any specific style of music or instrument.
It's actually almost opposite of what you say. Cardioid is not specifically for close-up. What decides the limit of distance from source is when ambient sound becomes equal or more prominent than the sound from the source, and a cardioid can actually be used a bit further away than an omni for the very reason that it only picks up sound from the front.
The lo-cut cuts low frequencies; it does not prevent overload. There's another switch called "-10dB Attenuation", which lowers the sensitivity by 10dB, and therefore makes it safer to close-mike loud sources.
What the lo-cut does is: if the mic is perfectlly sensitive in picking up frequencies down to 20Hz, lo-cut will stop that sensitivity at already 75Hz, or 150Hz, or whatever. Frequencies below that will be severely reduced in level. This is handy for some noises, like someone stomping his feet, or twisting his hands around the mic. It also compensates for the "proximity effect", ie when a cardioid is really close to a source: the bass gets boosted.
If you activate lo-cut when recording a piano, it will sound like a.....banjo. So, avoid!
Anyway, when the engineers were developing these things, in the 30's and 40's, classical music was usually their main concern, as no microphone company or recording label were seriously interested in how to record a screaming teenage non-musician, but rather how to faithfully reproduce the sound of....Jascha Heifetz. Today, a microphone can be advertised as "great for electric guitar", while the truth is that it's a copy of a microphone designed before electric guitar was even invented!
Otherwise, I agree with your advise!