My experience exactly. But try adding some duct tape over the extender. For me it makes a much more comfortable handle for the standalone use, and also helps to better securing it in the side loop of the nylon Wave belt holster. The width of the tape matches the bottom length of it exactly. The length of the piece is substantial to be useful (about 3').
Another useful trick I'm using - a side cut in the middle of the plastic bits holder, extending the middle bit's loop, so you can insert the extender into it making a high torqur handle. The plastic is weak though, so don't expect a really high torque, still - good yo have, without compromising anything.
Just made some pictures:
What's inside (the brightness is artificially enhanced for clarity):
1. two aluminum pieces (scavenged floppy doors);
2. sewing needle with strong nylon thread;
3. forceps (it's sad the LMW lacks it);
4. bits bank with cut-off section (middle bottom) for the extender insertion, note the hair-thin Nichrome wire winded around it between bits, it can be used as a great plastics saw, and as a reusable conductor for fire starting with the flashlight battery;
5. HD sewing needle, needle with handle, large injections (hollow) needle in the pocket behind the velcro;
6. extender with duct tape and standard (computer screw sized) bit;
7. AA flaslight;
8. peanut lighter sealed with white duct tape (white DT is good for writing with space pen on my key chain; sealing prolongs the fuel life in the lighter for much longer that with just the stock seal);
9. piece of white duct tape over the unused side of the pouch closure velcro with my email address (actually it's there for preventing the lint accumulation on the exposed velcro piece; it is exposed, because of the peanut lighter riding at the bottom of the pouch, preventing it from normal closing);
10. the bottom end of two types of the steel wire hunks, can be used as a reliable gear attachment point (see the image of the back);
11. steel wire screwing split ring - easy to undo one handed, reduces the lanyard's frying over the LMW's steel edges.
12. The lanyard with some split rings and swivels. I lost one LMW, now using the lanyard with everything in the pouch; it is long enough to operate the tool without detouching it; winded around the tool when in the pouch.