That pretty much sums it up. There's a Windows 32bit executable version of LHA that supports long filenames BTW, but only on the command line, WinZip will support the older DOS version of LHA but is aware of it's filename truncation.
As for a 'free' copy of workbench, if you get a real Amiga it'll come with it or you can buy Amiga Forever and get Workbench 1.3, 3.1 and 3.9 thrown in with it.