Old thread, but since I ran across it others might too. So...
Cycling a LiPo is good for a number or reasons, but as mentioned 'conditioning' the battery is not one of them for LiPos. I always cycle my batteries when first purchased, and then once or twice during the season if in constant use, or at least the beginning of the season for lesser used packs. When new, it validates the capacity and condition of the pack so I know what the actual capacity is and its internal resistance. Then every so often I cycle it again to compare against its original capacity and resistance to check the health of the pack and record the new actual capacity, which is usually slightly less. If I see a large increase in resistance or decrease in capacity it lets me know the pack is probably better used for bench testings or other non-critical uses.
With LiFe batteries, its far more important to know what the actual capacity is for the pack, and how much is used for each flight (in the case of a receiver pack), since one can't really tell reliably where they are with regard to capacity by a simple voltage test. The discharge curve is pretty flat until the very end, and voltage varies more based on load. Knowing for example that a LiFe has a true 2420mAh of capacity, and each flight uses 300mAh, we know we have about 8 flights worth of capacity. We can then count 3 flights as reserve, and know 5 lights on that pack would be safe. If we don't cycle the LiFe every so often, and the capacity drops over time the reserve is gone, and eventually the pack may only support 4 flights, yet the pilot is still thinking 5 flights is safe.
LiPo or LiFe, I do cycle the packs often (more so in LiFe, less so on LiPo) just to know its condition and overall health. It's like my fuel tanks, I wan't to know how much fuel I can put in there, how much I take out on a flight, and know if there is any change or loss over time. Luckily, all my fuel tanks are clear
