I've tried searching for local-interest weblogs via Google a few times, but I've never really found anything interesting. It's hard to come up with the right set of keywords, and Google isn't location-sensitive, at least not yet.
This morning, I noticed this in my logs:
188.8.131.52 - - [31/Oct/2003:05:14:30 -0800] "GET /scott/index.rdf HTTP/1.0" 304 - "-" "Localfeeds: Geographic Syndication, http://www.localfeeds.com using UltraLiberalFeedParser/2.5.3 +http://diveintomark.org/projects/feed_parser/" 0 scottstuff.net
Hmm. Could be cool. Since I just added latitude and longitude to my site yesterday, it seemed interesting, so I hit them up to see who else it knew about within 5 miles of home, and it returned 4 or 5 interesting results. It'll even export an RSS aggregation of local blogs for you. Cool.