The Cliff Railway and the old L&B station were on opposite sides of Lynton. I've walked down from Lynton to Lynmouth (never walked the opposite direction; I'm not that silly) and it takes less time than it does to walk out to the old L&B station.
Although the Cliff Railway has a gradient of 1 in 1 (well it feels like it - someone will be along soon to give the actual gradient to two decimal places), the upper terminus at Lynton is by no means at the hilltop, once you walk through the couple of central streets it's still a long uphill plod to the old L&B site, which is why the railway never managed to make it closer to the town.
Bear in mind that the previous L&B station, Woody Bay, was the highest in southern England at nearly 1,000 feet, the L&B just wasn't able to make the complete drop down to Lynton town. The fact that Woody Bay was named after a hamlet down on the seashore when it had this highest elevation gives you some idea of how the L&B stations missed their targets !
Thanks. As they like to say on another board which I frequent, "ignorance fought". Hmm -- much though one may love narrow-gauge railways, one pretty well has to admit that very many n/g lines' no longer being with us, is for somewhat valid reasons .