Forgive me if I am misinterpreting your post, but your description of "the LED sees a PWM power signal at a frequency of the input that goes from 0% to 50% duty cycle representing no clipping to full-blown clipping" is not what your circuit as described is doing.
Your circuit appears to be indicating on a every other waveform-cycle basis (assuming no full-wave rectification) the digital expression of isClipping or notClipping. There is no useful information regarding degree or amount of clipping. it is either above the comparator threshold or it isn't. Since low frequencies can tend to dominate audio amplitude, and perception of the human eye blurs on/off events faster than 20-30Hz, this can appear as if some kind of PWM/brightness modulation is happening.
To get any kind of controlled gradient, you need something more complex than a single comparator. In this case, a handful of comparators setup along a multiple resistor voltage divider string can be used to generate the various trip points for multiple LEDs.
For a single LED to accurately represent this by varying brightness, true PWM is one way to go. To perform this without a MCU is possible. If it were me, I'd full-wave rectify (and filter) the audio to get a DC representation of the level, then feed a traditional comparator with a triangle wave reference (classic PWM method). Here's a very basic description:
https://www.quora.com/Why-do-we-use-a-comparator-in-PWM - from there, you can use the PWM (now modulated per peak audio level) to control LED brightness.
The above method ignores the logarithmic nature of audio/human hearing, but it could be sufficient for a clip indicator that gives a bit of a warning before full on clipping.