I think Craigslist is designed more for a casual job seeker. I don't think I have ever found a job on there, and I have checked it for work many times. I wouldn't totally rule it out, but I don't think it should be depended on to be a source for jobs. It is just a tool and a resource not necessarily a great place to find a job.
I agree when it comes to a traditional job... like putting in the application, relocation if you get the job, etc.. because you are competing with so many others for the same one or two positions.
On the other side, however, I've been watching Craigslist rather closely for the two weeks since I originally posted this question and when it comes to "little things" that don't involve a traditional 9 to 5 salaried job, I have been pretty amazed at the number of opportunities that come through there.
My original problem still remains, though... it won't save anything but New York City for me. I want to look countrywide! Maybe my perfect gig is in Omaha and I'd never know it.