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Hi,
First, do we have to call it a luggage tag hitch? The knot has lots of other perfectly valid, long-employed names (ring hitch, girth hitch, lark's head hitch, bail hitch, etc), none of which involve something as unsalty as luggage.
Second, yes there is some weakening resulting from the hitch, but that is easily compensated for by diameter.
Third, consider multiple Brummels for short pieces, or make a soft shackle.
Fair leads,
Brion Toss
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