Seems to me like LocalStorage in this case is just a way to get around people deleting/blocking cookies. What would be the legitimate use?
Caching/storing GUI state and user configuration.
You (the server) doesn't need to know about LocalStorage contents. You can read and write from it via JS without ever sending that data somewhere. It actually improves privacy if done this way, because then the user owns the data and you just act upon it.
Unfortunately Apple thinks otherwise, they clear LocalStorage in Safari after a while by default.