To distribute your Love2d game as an AppImage, all you have to do is
download a Love2d AppImage from: 
https://github.com/love2d/love/releases/latest and then extract the
Love2d AppImage in a terminal with:

    /path/to/love-##.#-x86_64.AppImage --appimage-extract
    
A "squashfs-root" folder will be created. In a terminal, you would then
run:

    cat squashfs-root/bin/love Game.love > squashfs-root/bin/Game
    
...to create a fusion between the love binary and the Game.love game. 
Next, open the love.desktop file with a text-editor and replace the 
"Exec=love %f" part with "Exec=Game %f" and make changes to the other
desktop file variables as needed and do not forget to change the icon
file if you have your own. Put the "squashfs-root" folder back together 
as an AppImage using the 'appimagetool' from
https://github.com/AppImage/AppImageKit/releases.

And yes, you can technically just fuse the love binary and the Game.love
file together and distribute the result; however, doing so assumes that
the user has all of the dependencies needed to run the game.