You're the second person. When was the last time you encountered anyone using KLOC's (per 1k lines of code) as a measurement of work done? Are they working on mainframe codebases?
The DOD and their "experts" love measuring software projects this way. They even take the cost/LOC ratio as a measure of value. I was once semi-seriously chastised for committing a change with net negative LOC because it broke the formula and implied negative value.
2) You can't be productive having 0 LOCs. So 0 LOCs = 0 productivity. n>0 LOCs = (presumable) some productivity. I would say we have a trend.
2) I know what you mean. I do it often myself and I know it improves code quality. It's not my intention to measure "work done" in LOCs, which, as you say, could be contradictory. I propose to measure the size of a project in LOCs. Suppose, you have two projects. And you have all the time you want to reduce their LOCs (to improve code). After you are done, both projects will still have some LOCs. My point is that the project, which has more LOCs, after you had your fun with it, is the "bigger"/more complicated project.
The added value a software engineer produces with his work in a single unit of time has a huge variance. Furthermore, it can range from negative to positive.
I.e, it does not matter how long one works. The only thing long work hours of a software engineer communicate is that they work long hours.