Magfan, to answer your question, in a power amplifier of conventional design (not class D IOW) the problem you face if you use local feedback as opposed to global is the issue of gain. IOW if the stage that the feedback is around does not have a lot of gain, it may not help you all that much. Where this really plays a role is in the output section, wherein if the amplifier is to conform to the ideals of the Voltage Paradigm (IOW, be a voltage source), there is rarely enough gain in the output section for said local feedback to do the job.
I did say rarely: the Ayre amplifier is able to be a voltage source without any feedback.
Anyway, you encounter many of the same problems with local feedback as you do with global, but overall I would say they are less pronounced, as (in theory) a single stage is going have a shorter propagation delay than an entire amplifier. This will tend to push the time domain issues to manifest at a higher frequency. That does have its good and bad side, so again a lot depends on the actual design!
How I see all this is very simple: as long as the amplifier fails to add **any** distortion to the 5th, 7th and 9th harmonics, then it all should be good. It will be even better if the lower ordered harmonic distortions fail to appear as well, although this is far less important.