(on the state of Connecticut, for instance... but it's bound to be similar all over the place)
as far as I can tell craigslist isn't providing anything that isn't already there... it's just putting things on the internet and walks away with loads of millions (especially in the long run) -- money that isn't benefiting the state of Connecticut (or any other place where craigslist exists) at all...
don't the people of Connecticut get some free value out of it? it appears that such gains are only at the individual level -- not when considering the community as a whole -- and for trivial things (e.g. a person can get rid of a couch by posting it on craigslist instead of donating it to Goodwill; a business owner can find employees without placing an ad in the newspaper and thus helping support local journalism), and only for as long as it is in craigslist's interest not to charge... (#4)
In the mean time news organizations will be negatively impacted, crime will become easier to commit (some of it, such as prostitution, will be imported from out of state) and the back-market-like alternative to regulated business (bye bye non discrimination for instance) is allowed to flourish... --> so what is the overall long-term impact on the places where craigslist exists? I would think it's bound to be negative!
(Mozilla help: what's the long-term effect of craigslist?)