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Locally Managed Tablespace (LMT) is one of the key features in Oracle database. These have been made available since Oracle 8i (though not all options). It is worth using LMTs considering the benefits in doing so.
Advantages of LMTs
1) Dictionary contention is reduced.
Extent management in Dictionary Managed Tablespace(s) (DMT)s is maintained and carried out at the data dictionary level. This requires exclusive locks on dictionary tables. Heavy data processing that results in extent allocation/deallocation may sometimes result in contentions in the dictionary.
Extents are managed at the datafile level in LMTs (good news). Dictionary tables are no longer used for storing extent allocation/deallocation information. The only information still maintained in the dictionary for LMTs is the tablespace quota for users.
2) Space wastage removed.
In DMTs, there is no implied mechanism to enforce uniform extent sizes. The extent sizes may vary depending on the storage clause provided at the object level or the tablespace level, resulting in space wastage and fragmentation.
Oracle enforces the uniform extents allocation in the LMTs (when created with UNIFORM SIZE clause). Space wastage is removed, as this would result in all the same sized extents in the tablespace.
3) No Rollback generated.
In DMTs, all extent allocations and deallocations are recorded in the data dictionary. This generates undo information thus using vital resources and may compete with other processes.
In LMTs, no rollback is generated for space allocation and deallocation activities.
4) Recursive space management operations removed.
In DMTs, SMON (the Oracle background process) wakes up every 5 minutes for coalescing free space in DMTs. Optionally, the ALTER TABLESPACE <tablespace name> COALESCE command is also used to coalesce DMTs and reduce fragmentation.
On the other hand, LMTs avoid recursive space management operations and automatically track adjacent free space, thus eliminating the need to coalesce free extents. This further reduces fragmentation.
5) Fragmentation reduced.
Fragmentation is reduced in LMTs but not completely eliminated. Since adjacent free spaces are automatically tracked, there is no need to do coalescing, as is required in the case of DMTs.
Should you begin to use locally managed tablespaces, I believe the answer is yes. In summary LMT is higly beneficial and a powerful feature. LMT makes management of object extents much easier.