I am successfully running all network traffic through Tor BB's proxy server on OS X by having changed my ethernet and wifi settings to run through the SOCKS 5 proxy via port 9150 in System Preferences. The default exceptions are: *.local, 169.254/16
To be clear, I am not asking about adding common exceptions which already makes sense, e.g., adding "stackexchange.com" to the exception list makes perfect sense already.
Can someone explain how changing the default exceptions (*.local, 169.254/16), or removing them, etc., will impact my security and privacy as it pertains to my running my traffic through the tor network using the Tor BB's automatically configured SOCKS 5 proxy?