“Hyperlocal” coverage: future or fad?

Hyperlocal newspaper coverage, whether in hardcopy or online, is being touted as the latest Tool to Save Newspapers. An American Journalism Review story suggests it may not be all that. Beyond the article’s noting that, based on experience of papers to date, there’s definite concerns about content and quality of editing/writing, I just don’t see how this works on the advertising side.

If you’re targeting such narrow blocks, like Census blocks, for these sections or pages, well, your circ numbers for the overall paper may be high, but not that section. Ditto for online. I just don’t see this being the “savior.”