First, isn't the hybrid forum an odd place to be having this discussion? That out of the way, I think that we are pretty much in agreement and are saying the same thing though a little differently. There of course remains some aspects of your slant that I find puzzling. For example you wrote, "I also try and educate other breeders as far as what are "typical" markings for each locality (so they don't buy mis-represented or cross-bred animals)." Wouldn't this interfere with people working with the entire range of phenotypes especially those more rare types that you are looking for? Imagine you are successful in establishing a standard and then locate your redheaded or king snake like St. Mary's animals. Wouldn't people by and large then think you are misrepresenting your stock? It is because of the very diversity of phenotype that YOU so often point out that I believe (brace for opinion) using phenotype to classify locality is a fool's game.
As for the collection of additional stock contributing to the entire "produce", I can't disagree with this possibility however I do not think that this is generally the case. The female VA Beach animal I placed with a locality collector has remained unbred since its placement. That is entirely within his prerogative and I respect his adherence to a self-imposed standard however it illustrates the point that few if any locality advocates are willing to admit new genes into established captive populations unless they hail from the same general region. Further, another breeder (from your neck of the woods) with an animal from SE VA released it after being unable to locate a locality mate. These two examples represent, which I believe are not isolated, represent lost opportunities to improve the "product" as you say. I find your suggestion to "find it, establish it(breed for "purity" then once established----its a free for all" agreeable but current trends indicate, to me at least, that this idea would gain little acceptance until inbreeding depression in a given line mandated such out crossing.
The route of this argument from my perspective still comes back to a few issues
1. There aren't really accepted phenotypic descriptions of "pure" subspecies and similar descriptions of locality specifics are likely to be even more problematic. In other words you can't define locality by phenotype. Again that's just my opinion but one also shared by many locality breeders even though they don't hesitate to utilize phenotype to discount the validity of other's stock.
2. Locality data (cough choke) information is subjectively based on individual trust. What is good data to me and you might not be to another. Not only does this create sticky situations, given the monetary incentive, ALL locality data should be taken with liberal amounts of salt. It is precisely the "lack" of this monetary incentive that led JG to accept what would ordinarily be very dubious "data" in the labeling of his Stillwater line of hypo bull snakes! Largely ignoring that locality information is subjected to the monetary incentive and then using the lack of this to justify poor data is kind of like having your cake and eating it too.
3. Given the lack of ability to equate locality with phenotype and the subjective nature of how locality information is determined, breeding along local lines is reduced to a mere personal preference. Though I know some locality breed with higher ideals in mind, the exploitation of current market trends favoring locality animals by communicating this to be THE right or ethical way to breed reptiles or to cast disparagements on those who only work lines lacking such information is elitist, divisive, misleading and in the end the last thing this community needs.
All that being said I think we're taking ourselves entirely to seriously!