Hi Dave,
The idea with the loopback daemon was to have it be a click-and-go, 'just works' setup.
Here's how it works: Clicking on the menu entry for the alsa-loopback daemon runs this:
xterm -hold -e "/usr/bin/aloop-daemon"
..though if you want to launch it from a terminal, 'aloop-daemon' would work as well.
aloop-daemon is a cool little python script (created by falktx) that makes sure Jack is running, then creates Jack input and output ports with alsa-in and alsa-out (or zita-a2j and zita-j2a, with a little script modification), and connects them to system record and system playback. The Jack clients are persistent, so you can connect them wherever you want and they will not be dropped unless Jack or aloop-daemon shuts down.
The only 'sticky' part about the whole deal is that this loopback setup requires a special .asoundrc file, which, if left in your home folder, plays all your audio into the loopback soundcard, meaning you have no sound unless Jack and aloop-daemon are running. So we (mostly Fragadelic, with a little input from me) made the script copy the loopback .asoundrc into place at startup of the daemon, and remove it when it shuts down. This should work for everyone except those who are already using .asoundrc, such as users with multiple soundcards or certain USB soundcards. In that case, the script will back up the existing .asoundrc and restore it when it shuts down. The script isn't overly intelligent with this and could potentially mess up the handling of the .asoundrc's, so caution (and a good backup) is recommended if you're using an .asoundrc. It could also potentially leave the aloop .asoundrc behind, say if you have a kernel panic, leaving you with no sound without Jack until .asoundrc is deleted.
But the idea was to have something that was as simple as possible to use, and from what Rick says, it seems to have been successful.