Gave this a shot and it while it's in working condition for how it's advertised, it unfortunately creates extra risk for some who will use it as it doesn't have the option to actually "destroy" items as they are looted. That means it creates the potential for large piles of corpses near anyone who is killing mobs and using this to handle their looting which will draw extra attention from anyone passing by or using MQ and peeking at their map.
The feature described as "destroy" in Lootly actually functions as "ignore" does...leaving on the corpses anything you have marked for "destroy" rather than actually looting and destroying them.If you'd like to loot or destroy everything so as to not leave corpses, Lootly forces you to loot absolutely everything and then issue a command manually to delete items marked for "destroy" that may be in your bags.
Not only is that extra work, it's not very practical for worthless LORE items (or LORE items you already have equipped) as you'll have to constantly be issuing a manual command to delete those LORE items that come up as they do. If you fail to delete LORE items right after they are looted, the next LORE items of the same type that come up will leave corpses that last a good 30ish mins each even if you are looting all you are able to as Lootly suggests you should do.
There's already a working loot plugin that has a working "destroy" feature (which will seemingly keep people safer as a result as it will draw less attention to the player using it) and already macros and other means of deleting everything in your bags marked for destroy with one command as this does if someone preferred to do that manually.
The creator is obviously very talented (as well as much appreciated/respected!) and it would seem this is simply a matter of design choice rather than anything else. This would be a great way to loot if this important issue could be addressed at some point.