One of the great do divisions within the heathen community is that of Loki. Passions run so highly that some will not even use his name. I post this as I have recently seen a couple of these debates raging online.
Personally I view Loki as the embodiment of the Hagalaz rune – the ability to destroy and provide a needed source of growth at the same time. In the midst of a scorching hot summer a hail storm can destroy a crop but also provides much needed water when the hail melts. Likewise Loki can cause a major issue for the Gods, but then the ultimate gain is often of great gifts such as Sleipnir or Mjölnir.
Snorri and his retelling of the myths can be the source of great debate due to his various portrayals of Loki and Baldur. What we will never know is that if Snorri was simply ensuring the survival of his texts by adding christian elements or if that was his original intention.
The Loki issue is an example of a larger heathen issue for me. Like Plato’s cave allegory, if we have limited written sources then these become our reality or the visions and we are unable to grasp the idea of the forms beyond our knowledge. As far as we can tell, Snorri may even have been the metaphorical prisoner taken outside and shown the forms only to be returned to the cave and have people dismiss his opinion s that of an isolated view that must be wrong.
If we discard something based on quantities of evidence then we may find that we are dismissing evidence of the forms in favour of tales of the visions. The lack of evidence for something does not indicate evidence to the contrary.
I chose to read the texts we are lucky, when compared to other Pagan religions, to have and then use these to inform an educated personal decision. Do I blöt Loki? No – but then I tend to honour either Odin alone or blöt to the collective Aesir and Vanir amongst which I do not attempt to know fully who makes the members of these groups right now. That knowledge has neither been sort nor given.
My advice? Educate yourself and make a decision that feels right to you. You would hate to upset your fultrui in making the wrong decision because you followed others opinions.