best explaination I've heard, but will still remain the first stumble of hokiness to me in the series.

I think this was still a means of confusing and not letting info leak out of who the murderer is to the filming crew and public.  Ed was used as a script decoy, and in the script for this scene, Ben is arrested and then dies in place of Leland. 

Probably used these guys (Bobby, Ed, Leo, Leland, Ben) because they were being preventative.  Wonder if they shot any other characters being arrested. 

Adherence to the trappings of formality and tradition drives Cooper's mojo.

Known Facts: The bootprints made by Hank when he shot Waldo were the same brand as those sold by the OAM. The OAM was had formerly traveled in pharmaceuticals for an East Coast drug company. Hank and Leo were distributing illegal drugs to the local high school elite. Leo was receiving shoes from the same presumably East Coast company that OAM worked for, one of which now had a hollow heel. That is where Leo hid the incriminating Ben Horne tape.

Speculation: Did the hollow-heeled shoes arrive empty? Was there a former contact of the OAM's drug-company who worked as the middleman, picked up the shoes, created the cavities, filled them with an illicit substance, and mailed them off to Leo's aliases for him to drop into post offices along his truck route and pick up. A series of post office boxes are all that Leo would need. Nudge Nudge, Wink Wink, I don't want the old lady to know that I'm sending off photos to Fleshworld. A buyer returning unhappy purchases could be used as a cover for shipping payments back to the middleman. Perhaps the middleman was the guy from the Fleshworld ad who wore lingerie but his beard spoiled the effect, at least in Agent Cooper's opinion.