This isn't local media. It's a web site that lets people share and rate neat local stuff.
This was why I went the social news route. My first idea was a local blog network. I realized that would never get covered, so I went with something that would help and be useful to local news orgs so we could have partnerships like the ones I mentioned.
We're no more competition than Twitter of Facebook is.
As I said, "real or perceived". Craigslist didn't seem like competition at first either, but then it killed the industry. The local media's business is advertising to local people, the same local people you're targeting. While you may not compete on journalism, you compete on attention and ad revenue.