ClickZ reports "about half the panelists believe local search engines will replace national search engines like Yahoo, Google and MSN when it comes to specific market needs," according to Borrell Associates's "2006 Local Search Advertising" report.
Two-thirds of the panelists say that this can happen as soon as five-years from now. My own personal feeling is that this won't happen. Yahoo, Google and the other engines, in my opinion, are doing a wonderful job with their local search portals, and the vertical integration with their main search portals. In addition, Google and MSN have wonderful search advertising targeting, with Yahoo not lagging that far behind. But with local search revenue to hit $987 million this year and double the year after, there is plenty of money to be shared amongst all the engines.
An executive summary of the report is available here.