On a nearly empty floor, following LOD isn't as important as it is when the floor is crowded. Have you seen professional couples dance in shows and go against LOD for an entire side of the floor or something? No one's around so they can. Personally, I don't really like seeing that, but it's not actually a problem. Following LOD is meant to keep traffic flowing -- you don't travel head on into oncoming traffic. But if there's almost no one around, you can do it if you want to. As for passing on the inside, well, you're supposed to pass on the outside as that's where the faster moving traffic is supposed to be. But if couples are blocking the outside edge, you go ahead and pass on the inside. Again, I don't really see a problem with breaking the general guidelines when you need to and can do so without inconveniencing others.

Personally, I probably would have just cut across the floor, passing them on the inside, the first time. If they were blocking the short side of the room, which I think they were from your description, you don't have to go all the way to the edge of the room before taking the short side. If the outside edge is blocked, just cut across the short side a little sooner. People do this all the time at the socials I go to. Not everyone goes as far into the corner as they can. You can cross the short side a little more towards the center of the floor if you like.