In some cases a directory search is a good thing. Local is one of those cases, and something that is tremendously broken on the web. I'd much rather go to a directory of pizza places in my area than do a keyword search of pizza. Yes this is Yahoo, but local/SMB is a huge untapped market that is not served by the current web.

The only local business I find with websites are the ones that pay some fly by night "web designer" to put up some BS templated site with little info for $2k. Here businesses can do the same thing, but also control their site, get SEO, advertise, and get analytics for less.