It was pointed out to me in a comment to the previous post that Google has actually been testing this since late last year and has now decided to roll it out more extensively. Assuming this is correct Google must have seen users positively respond to the presence of the map and the 10 pack in these situations.
There’s all kinds of discussion about how this will affect SEO going on at SEL and elsewhere. Matt McGee points out that the ISP location matters even more now because IP targeting is the way that Google will identify what local results to show. Inevitably the examples of horribly wrong results start to appear. Today at the Web 2.0 event in San Francisco, somebody told me that he was getting results for Arizona when he tried it out.
Eventually this will all be moot because IP targeting will be largely superseded by other methods of location identification (triangulation/GPS) baked into the device and/or the browser.
Google is also getting data from NearbyNow (maybe Krillion) on the product side and we should start to see more local product data start to appear in Shopping if not in search results too.