You're literally between a rock and a hard spot.
...and it's never too late to hit the gym!
Your current seat is heavily "dished", which typically inhibits allowing your legs to easily (and quickly) come off the seat since you usually need to move forward to clear the sides. It's also usually difficult to get them close to the center line of the bike which of course gives you a bit more leverage when stopped.
There are low versions of the stock LT seat that aren't dished - you should be able to find one in the classifieds on this site or with Mike at www.BeemerBoneyard.com
Alternatively you can have a new, lowered custom seat made - just be prepared to spend some serious money for a quality job.
The LT is notoriously demanding at speeds less than 5mph - requiring spot on riding technique: a bit of clutch slipping while staying on the REAR
break and chin up position. Looking down will get you in trouble every
time. Practicing control at low speeds in a deserted parking lot will keep you from joining the Dropper's Anonymous club.
If your inseam is less than 29" you may have indeed picked the wrong motorcycle - the LT at 800+ pounds fueled requires some serious muscling not only at low speeds but when parking or moving it around while off the bike. On the flip side it is an amazing handling machine for it's heft above 10 mph, and only gets better the faster you go.
Boatzo's idea of adding height to your boots is probably the easy, cheap solution. Try to find a good Vibram sole like the one below with a large contact patch and fairly soft compound. You'll need to have it attached to a hiking boot versus a typical motorcycle boot - which will work just fine since you'll have a bit more ankle support as well.