I can't believe there hasn't been a mere mention that Panda is more of a format change than any update.
The local results displayed are pushing the organic 2-4 results below the fold. Not only for the organic positions but for the 4, 5 adwords positions previously displayed on the right, which now show the small map locations.
The result is less clicks for both! So unless you are number 1 organic result for a keyword phrase or 1-2 or 3 for adwords your click thru rates has decreased tremendously obviously causing far less traffic.
The only exception maybe for longer tail keyword phrases which G will not display local results or can't put 2 and together for the longer search phrases.
The locals are enjoying a large run up in calls, website traffic or walk-ins. Just call anyone of them in any industry and ask.
The phone book is going away and Google will capture all that business, giving them free results for a while, then charge them for a local listing. Think of the billions of dollars that will equate to, even for a nominal yearly inclusion charge.
And why shouldn't they,? They are a for profit, publicly traded company.