It used to be that something local was in your neighborhood, but that was another era. If you couldn't walk or take a quick drive to the products or services you were after, they wouldn't be considered local, but instead, annoying. That was my point of view anyway.
Now, thanks to the internet and advances in communication technology, locality has evolved into a completely different animal. Locality is no longer a physical place, or an address. Online communities such as Facebook, Myspace, AOL, even this blog, all provide us with a sense of locality or being near each other. As AOL started the social network technology (very successfully), users loved the idea of being able to plug their computer into the wall in Iowa, and talking with a perfect stranger from Detroit, instantaneously. After that, AOL realized that users wanted to talk to people even closer and created chat rooms for nearly every major city, then allowed users to create private rooms about any topic they desired, I thought it was pretty cool.
Myspace and Facebook came along, and we all know the story there. Eventually there were small networks all over the world that would connect users locally, or at least give them the feeling of being right next to someone.