ericflo is correct. I'm trying really really hard to not do anything shady here. We use LSOs because our product is heavily flash centric and there are some issues (like not always running in a browser and also the size of data we store) that make LSOs a better technical fit than HTTP cookies. I'm well aware of the education problem surrounded LSOs and that's why I took the time to link to the macromedia pages where users can manage these things.
I apologize for not answering your questions sooner, I didn't know about that this HN thread until on a whim I went searching for it this morning. I'll keep an eye on it if you have any further questions you can also poke me on twitter or on freenode IRC if you'd prefer, I'm dreid pretty much everywhere.