I have been a huge fan of local search (and Google Local) for quite a few years now, and have signed up for and/or recommended every client I have sign up with any and all search engine local programs. That being said, I am not sure how many have noticed what Google is now doing with their local results - check this picture out: (I did a search for Gilbert Arizona Web Design)
You will see much more than 3 results come back in the local results now (old version just showed 3 at most). I think this is a good move (even though the text is harder to read) because I always wondered just how many people actually clicked on the link to see more local results. This has the potential to give more local businesses exposure, users writing more reviews and make it easy for them to rank higher on the (more natural) search results for at least one of their most targeted phrases, and do it for free. Of course Google is going to benefit in the form of advertising revenues, but I still think this was a pretty good move.
If you are newer to local search on Google, you can go to http://local.google.com and click on the learn more for "add/edit a business" and sign your business up. It is pretty simple and easy to do, and most local businesses are not doing it, so this could give you even one more edge over them. Any of the major other engines have local programs to that you can sign up for Ask Local, Yahoo Local - you get the picture.