DAB Controller described an unauthorized near-takeoff event claiming the Line Up And Wait (LUAW) phraseology was a causal factor.

Narrative

A PA34 was instructed to line up and wait on Runway 16 by Local Control 1. The pilot read back 'cleared for takeoff' then another voice using the same call sign corrected it by saying 'line up and wait.' The Local Control 1 Controller also recognized the improper read back. This is yet another example of a pilot mistaking LUAW for a takeoff clearance. I have filed another report of the general safety culture since introducing LUAW. Again; we as Controllers were briefed that because of three foreign air carrier pilots not understanding TIPH; we were going to change the ENTIRE NAS to LUAW to resolve the problem. It doesn't make sense to make all the registered airmen in the United States change something that has worked great for so many years rather than fix the three pilots that didn't understand. In all of my experience with TIPH the only read back error that I received from 'position and hold' was 'hold short' which doesn't create a safety issue. LUAW into cleared for takeoff can lead to a catastrophic event. Recommendation: eliminate LUAW and revert back to TIPH. The United States is the safest country in the entire world. ICAO should model us and not the other way around. We have such a high safety record for good reason.