Loki's key can be used the wrong way if people want. But, it is not a cheater nor a hack tool. Its a dev tool and those people use it for how its meant.
If your hosting a server and your server is suffering from Loki's key than it means you have not setup your server properly (you allow non-signed addons for example).
Any questions related to this can be adressed in a different topic, not here as DarkXess already pointed out.
** fixed typo
This post was edited by Foxhound (2011-12-05 08:46, ago)