Okay, so the core rulebook says but the players guide says and So does this mean that because you can now draw lines of sight to a held object it can be targeted?
If so, can you then TK, Shoot, Attack, or otherwise destroy the objects in contrary to what the core rulebook had said?

Example: Skrull ms. marvel with a heavy object hiding in some hindering, can Malekith tk the object from her hands and hit her with it?

No, as you quoted it cannot normally be targeted. So you would need a power or ability that specifically allows you to Target an object while held. Such as SM Cyborg Superman.

The object rules have confused me for a little while now, especially with the whole being in limbo thing while being held and whether or not their powers are still active. But based on these rules posted by the OP, does Arcades power work with held objects?

DEATHTRAP: Once per turn as a free action, Arcade can remove from the game any object 10 or fewer squares from Arcade to which he has a clear line of fire and deal 1 damage to each character adjacent to the object.

If I am allowed to draw LoF to a held object, then I don't see what is preventing this power from working. However, then I believe the question is, is anyone considered adjacent to a held object? I know this was asked about the Bat Signal, but I can't remember or find the ruling.

No, it would need to specifically state that you can remove a held object.

I guess it's an example of "can't" trumping "can"?

The wording just seems wonky to me:

An object held by a character can’t normally be targeted, destroyed, or taken away from the holding character.

It doesn't mentioned removed anywhere in there. Arcades power just needs LoF to an object, and if he has it, it's removed.

DEATHTRAP: Once per turn as a free action, Arcade can remove from the game any object 10 or fewer squares from Arcade to which he has a clear line of fire and deal 1 damage to each character adjacent to the object.

I accept it. Just one of those things I think is less clear than it could be though. Though I feel that way about several can vs. can't type situations.

You dont need to draw LoF to target something....if that were not the case Batman could never be attacked by a Close Combat Attack while in hindering terrain.

Discussing LoF in relation to held object only has to do with those powers that require LoF to held objects.

A dog is an animal. A bird is an animal. This does not make a dog a bird even if its a bird dog.

I'm confused as to what this was in reference to?

Wasn't asking a question about targeting. Just about whether Arcades power could remove a held object from the game, since you can draw LoF to them.

But it does mention that it can't be targeted. Drawing a line of fire is always targeting. Because you can't do that, you can't remove the object.