LSD makes tires burn?
 

Me and my friend have been in a constant argument about LSD's in general, does it cause the tires to burn up faster or less fast? why? ( I say less fast, cuz w/o a LSD my tires spin, i would assume a LSD makes tires spin less)

so it's better for tires or worse?

To reiterate what Jesse said,
It's a performance advantage- so you'll drive your car harder because you can- thus more tire wear. :)
You know- like every time you take your friends for a ride it's always "Hey guys- look what my car can do now!"

It's like the whole exhaust system giving you more fuel economy- sure if you drive like a grandma, you will see and increase in fuel economy, but if you actually use the performance you get from the exhaust, you will see no gain in fuel economy.

Well in a way the tires burn less due to the fact that you now have more traction off the line thus you are not getting that single tire spinning till you hit 40mph.