My first concern with this is that it goes directly against the closing changes recently implemented:
5(A). "Too Localized" is no longer necessary since the specific off-topic reasons now address its main use case. (new)
Too Localized was, by far, the most misused close reason in our
surveys, with both Community Managers and Moderators deeming over 50%
of randomly sampled TL closures to not have merited closure (including
Today, TL is used helpfully on code dump questions on SO, but the new
OT reasons are where this is now correctly addressed. SO can use
"Large blocks of code with requests for debugging without meaningful
supporting info" as a specific OT reason.
As you can see from the discussion below the post, there is a lot of disagreement with this removal.
My second concern is that we've already used our 3 allotted custom close reasons, and I think all three of them serve the site well. We can request that the community team provide us with the capability to have a fourth, but we must prove to them that it is something this site absolutely needs. Trying to make a convincing argument for a "too localized" close reason might not go over well seeing as it goes against the recent change dictated by the Stack Exchange team.
In general, I don't really have a problem with localized questions. Robert Cartaino put it nicely over at Pets.SE meta:
I don't particularly agree with your premise about local questions.
When someone searches dog licenses in Los Angeles, I sure would like
them to find this site. Once we ask allllll those questions that have
been asked hundreds of times on every other site on this subject, it's
those long-tailed questions that only a few people can answer — and do
answer — that will really make this site shine. It's the interesting
rarely-asked, well-answered question that will make this site stand
out in the long term. This site should strive to become The Complete
Compendium™ of all things pets.
Regarding the question you linked, I can see where we can make improvement but I don't think it's so terrible that we should banish it from the site.