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I've wondered the same for some time now too. Local search just does not seem to reveal useful results most of the time. There are many sites that are database driven that just replicate pages based on the town they are in and so when you search for a service in that town they repeatedly pop up even though they are just a national wide business with no local office at all.
I know that often I watch other people try and search for things get frustrated that they can't find it and give up. I help knowing how it all works and can generally find what they are looking for in a few searches.
I hope it improves in time otherwise, as you say, the general populus is going to get bored of looking for the needles in the haystack. That is Google's job, as I see it to pull those needles out.
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