route for localhost missing? (12.3, KDE4 & NM)

I have 2 computers on 12.3 KDE4. One has a route for localhost defined (YAST & hotplug managed) and one not (NetworkManager).

ip route show output:
hotplug:
default via 192.168.1.1 dev eth1
127.0.0.0/8 dev lo scope link
169.254.0.0/16 dev eth1 scope link
192.168.1.0/24 dev eth1 proto kernel scope link src 192.168.1.25

networkmanager:
default via 192.168.1.1 dev eth1 proto static
192.168.1.0/24 dev eth1 proto kernel scope link src 192.168.1.34

1 - is this a problem / should I "fix" this?
2 - how should I fix it?

Thanks
David