I take care of my hosts file by myself. I don’t wish LocalWP to attempt to modify it. I always have to cancel and read an error message popup whenever I start a site, because I won’t allow it to edit the hosts file, since I canceled the password prompt.
I control my host file exclusively, since I use SwitchHosts which allows me to control other hosts entries for other environments that are not related to LocalWP, too. Also I use LocalWP with the same domains that will be used on the live site, for personal convenience, so I sometimes need to get back and forth between stage and live and I don’t wish to always have to stop the local site to do so.
Long story short: Give me an option to disable the hosts-file touching in LocalWP, please.