LC is available on DSG (or automatic gear boxes). On manual you can control the launch with the clutch pedal, but on DSG you cannot control the clutch. You step on the gas, the clutch is engaged ant the car will move. The only way you can rev the engine in order to have a better acceleration without moving the car is trough LC.
This LC is not activated on all DSGs though. For example I think TDIs don't have it. Mine doesn't. It can be activated but I do not know how. Tuners can do it I think.
About damaging the gerabox, flywheel and the rest of internals involved, I think it is obvious that when the clutch engages it does it quickly. This thing combined with the hi rev produce quite a shock. in order to reduce this shock, the clutch would have to be engaged slowly but this would ruin the disks and you wont get the acceleration you would expect. Is that simple. There is no free lunch, there is no safe LC, there is no powerful engine that is also economic.