[jekrb]

It would be nice if localstorage worked in a new instance in incognito. This way webapps that require it can still function without affecting non-incognito tabs. What other privacy concerns would there be I'm wondering?

[walterbell]

If incognito mode discards localstorage, there is risk of silent data loss. E.g. imagine a web-based editor that saved drafts.

Websites can detect the absence of localstorage and change their behavior, e.g. notify the user that information will be lost after the session ends.