We employ general parabolic recursion methods to demonstrate the recently devised hypercube formula for Kazhdan-Lusztig polynomials of $S_n$, and establish its generalization to the full setting of a finite Coxeter system through algebraic proof. We introduce procedures for positive decompositions of $q$-derived Kazhdan-Lusztig polynomials within this setting, that utilize classical Hecke algebra positivity phenomena of Dyer-Lehrer and Grojnowski-Haiman. This leads to a distinct algorithmic approach to the subject, based on induction from a parabolic subgroup. We propose suitable weak variants of the combinatorial invariance conjecture and verify their validity for permutation groups.