Yes, '-cost ls' is very similar to 3dWarpDrive's or 3dvolreg's cost functional, and is appropriate for registering 3D images that are "similar" in appearance. If you are registering dissimilar images (e.g., EPI to T1), then you should use another cost functional.
In many cases, it is better to use the script align_epi_anat.py rather than 3dAllineate directly -- despite its name and help file, it can actually drive the registration of anat to anat (for example).