I know this question was asked and answered a while ago, but I wanted to chime in. Local storage is awesome. You should totally use it! But, only where using it doesn't take away from the user experience.
If you are saving settings that are critical to the system in local storage, you should probably implement a way for those settings to be synced to a server and loaded back it whenever a user logs in on another browser.
If, however, you are simply doing things like remembering preferences that are not critical to the system, go for it. Why not? And in that case it should not be disruptive to not have those settings saved, but helpful to have them remembered in their session/browser.
Finally, if this is for an internal system that is going to be run on a tv (as I gleaned from your other post) and not used externally, I don't think it should really be a problem either way. You could use a message in the configuration specifying "These settings will be saved for this browser on this computer" and then, if the system grows larger, eventually start syncing them into the cloud for each user.
Just my thoughts on it.