The reality here is that the VC-backed monstrosities are incapable of showing any price sensitivity because they can massage out local market difference with vast amounts of capital.

Local approaches can work and be sustainable, but they have to be able to charge a price that actually makes sense for the delivery. Right now that simply isn't possible because the VC-funded behemoths are capable of undercutting anything that moves in the space and attempts to be cash-flow positive in any sort of sustainable way.