I'm the developer of Lilith and the creator of the ugly homepage. ;)
I know that it is lacking documentation and I'm not very good at "selling" my application.
Please take a look at the readme over at https://github.com/huxi/lilith
I tried to describe the most common use-cases of Lilith in that file. There is also some help contained in Lilith itself.
Ekkehard Gentz has written a small tutorial about Lilith:
http://ekkescorner.wordpress.com/2009/09/05/osgi-logging-part-8-viewing-log-events-lilith/
Hope that helps.