Seems as if there is a little misunderstanding of questions and answers. I was just pointing out that a couple of your statements were wrong: Using absolute value does not double the modulating signal, and the detector stage does not need to know what the carrier frequency is. I guess this is getting off track because it does not pertain to the original question. Of course Lynn's software is only good for an AM signal. I believe he was just trying to give an example of how an envelope can be extracted from a modulated carrier using AM as an example.
I am missing something in another statement you said. Why must the modulating signal be DC shifted? In Lynn's vi, if you remove the DC shift by changing the 1 to a 0 in the addition function, you still get an output that is similar to the modulating signal, just lower in amplitude. Does the DC shift have something to do with the mixing of the carrier and modulating signal? Please clarify.