That's a good point rocco, though I think it could be fairly complicated to determine whether or not a query is locally oriented or not.
For instance, "Business Name, City, State" is easy, but how about "Famous Name House"? It's a local query, but how can you tell?
Well, search is far from solved, so I guess it's just another problem for Google to attempt to work through.
[edited by: tedster at 10:47 pm (utc) on July 12, 2008]
[edit reason] made specific search terms generic [/edit]