Your first post would have received a better response from me if you hadn't made the declaration that most users of the app were software pirates.
And from what I see of LS (my version is over a year old, so it may have changed), it doesn't block individual sites, just apps/daemons that try to connect to the outside world - so LS does nothing to block cookies from being placed or read by websites when you visit them (because if you've allowed Safari to connect, then LS doesn't interfere unless a site tries to use a method other than HTTP, etc.).
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