Why search engines need to crack geo-targeted searches

You mean you want a directory not a search engine.  Something that is manually created to make sure that each entry is slotted into the right place.  Like Yell, like .... Yahoo. 

We have got so used to smacking search keys into a search engine we have stopped using directories, and as a result they are dying.  Yahoo is now seen as a search site even though it has a great directory as well. 

As it is the routine advise from SEO experts is not to bother paying to be on a directory because you won't get the traffic.

True, but it is a pity.

Bob