That will work. You'll need to reduce R19 to keep IC2 from clipping when the LEDs are selected. Try 220K. To maintain the same voicing, increase C14 to 1.5nF. There will be a significant volume difference between the LEDs and Ge diodes. The GAIN control will have a different feel when the LEDs are selected. If I may offer a suggestion, replace one of the LEDs with a Si diode. That will do two things: reduce the volume in LED mode and provide asymmetric clipping in that mode.