Well there are advantages to being in organic and I've had other business owners say their traffic dropped way off when they got in the pack and they wanted their #1 organic listing back. (Back when all results were blended and you could not get lucky and have both.)
With organic, the listing is bigger, you get to craft the title tag the way you want it to read, with all the right keywords. And you get a description which can be compelling.
With a local listing you lose everything above, but of course gain the reviews, location data and map pin.
So I'm with you guys and think a local listing is better BUT it depended on what the consumer is looking for and what makes them click. More context? Bigger listing? Highest on the page listing? That call to action in the description? Or location on the map? Or reviews? Every consumer is different so it's hard to know what their hot button is.