[ablob]

There exist algorithms that deal with state blow-up. In fact, these algorithms project any given DFA into an equivalent DFA of minimal size - guaranteeing a minimal automaton for the language that is accepted by it. In essence, you build equivalence classes between states with respect to possible paths they can take into other equivalence classes for further input. State machines for LR-Grammars are vastly more complex in comparison to NFA automata, so for most (if not all) applications, a computer that can deal with LR-Grammars will be able to handle a NFA conversion with a subsequent minimization.