I tend to think in those terms, if not always act on them. Not always....

To the OP:
I've been exactly where you're at. Yep, it's infuriating. CL is being used to bid folks against each other. Like you, I'm an hour away from the "big market."

I've lost several buys simply to distance and not being able to arrange it in time.
I've had several try the "bid me up" thing. CL as local eBay.

Here's what I've done in the past; some things worked, some didn't.

1) Email and offer to send PayPal, plus fees, right now, and explain why (distance, schedule). This has only worked once, and generated suspicion other times. One other time, it convinced the seller I was serious, and he met me half-way between our locales.

2) Make an offer, and if you are told there are "others," withdraw it. This is purely about the bidding part. I tell the seller my offer is good until such and such time, I can pay by PayPal or come up there when we can arrange it, but if he/she wants to raise the price, good luck. This has resulted in two buys at the original agreed price, either because the seller now trusts me or there were no others, and the transactions went very well. The others, I told I'd report to CL, and did so. CL pulled both ads.

3) Get someone to pick it up, either by paying with PayPal to the seller or having someone you trust to buy it and PayPal them. This solution is all about good faith. I have had this work from California (riva did it) to locally NC (roccobike has done it twice for me) I've done it for others, and work hard to return the favor or Pay if Forward. This creates proximiity to the market, if you don't abuse it. At the moment, I'm hoping it works for one of my BF friends once again, and I'm going to help as much as possible.

4) Simply go get it, stay in contact, but be prepared to say "no" when presented with a higher price, or be bamboozled such as the boat deal.

Re, the boat deal: I'd have likely gone the extra 1.5 hours and found that Kenosha SOB and knock on his door, inquire as to whether he attends a church, and if you find out which one, you're set. Then tell him who you are, and thank him for his time. Explain that a local newspaper ad is about $35, in which you will explain to the community what he did and how he has no integrity. Then explain that you drove so far, you may as well start visiting his neighbors to tell them, and you plan to attend his church in the near future and talk to some of those folks, too, especially the women. They may not believe you, but they'll certainly talk about it. Advise him he can sue all he wants, as the truth is the truth, so bring it on, then thank him for his time, and leave. Hesitate as you leave, and ask if he has any kids he's teaching to do the same thing.

And lastly, don't look at it as a loss. You never had it in the first place, and the expansion of markets due to the internet are great, but still not an ideal set of circumstances.

The best bike I ever owned, I got from the local trader publication. Called, drove 1.5 hours, bought.

Quite often, the seller lists it, then others start to chime in to try and help her get more of your money. I often state, "you have a fair price and I'll pay it. Is there anything I need to know before I get in my car and come that way?" This can ward off problems if the seller's intentions are not in line with the ad.