Why Localbitcoin, why not Coinbase, Kraken, Bitstamp etc... there are many safe options out there. Bitcoin itself is not a Wild West, actually it is very transparent and traceable network. Way more people are scammed just using the traditional banking or online solutions or even cash, than bitcoin.
You answered yourself in the question.
Some people do not want to be traced or have transparent transactions.
If you are just a regular joe bettor, no reason to pay extra and suffer risks of being scammed at localbitcoins.
