Linda, thanks for your observations. It's difficult to decide how to divide this discussion up between our organic forum and our Local forum, because the update (as I see it, anyway) is a melding of multiple aspects of local, organic, and mobile considerations.
I'm assuming that one of the many decisions that Google needs to make for a given search, eg, is whether GPS or IP-based location results should control what kind of results are shown. So while a pizza search is going to have different priorities than, say, a search for an attorney... it's not clear, though, that a smartphone search should always have different priorities than desktop. I've been in conference rooms where some in the room are searching from smartphones and some from plugged-in laptops.
But shopping searches are much more likely to have highly localized GPS results, say, from a smart phone. Searches for lawyers, hotels, or real estate from a phone might have very different localization concerns.
One of the things I've noticed in this update (which unfortunately I haven't been able to follow very closely) is that, on desktop search, the search tools Location selector in main Google search page is often replaced by the map in the upper right of the serps page... and that the initial map is usually much broader than the selected location would suggest it should be.
I see the various factors... business type, map, named-location-in-query, IP-location, GPS-location, Google+ page, along with organic factors, all functioning like gears that need to mesh... but because of the different data sets, among other things, they're clearly not meshing yet.
For some local searches, all appears to be normal. I'm thinking it's possible that Google might be intentionally doing what it did with the early pack results, and use different displays and different cities as test beds, so their may well be no consistency yet on purpose.
It also strikes me some large cities, like Los Angeles, present very different challenges than do small towns, metro-areas, or rural communities.
Again, the discussion that most probably will (or should) talk about the traditional local factors is here, in our Local Forum...
Google "Pigeon" Updates Local Search Algorithm http://www.webmasterworld.com/local_search/4690773.htm [webmasterworld.com]