As a test, I allowed LS to run silent and allow connections, and then, still in the same mode, I tried to visit domains on the resultant connections list and found that Safari was unable to connect with those that I knew should have been blocked...an excellent indicator; other domains showed an endless spinning work wheel and never connected, and others did connect.
In the same mode, I also tried to access domains on my hosts list and was universally unable to connect.
Pending a response from Ob Dev, then, I'm assuming that LS and Ghostery are NOT self-canceling.