I have experienced a few questions which got closed for being "too localized". I didn't agree with the people who close it and it's fruitless to make an argument with them. I personally strongly believe there are a number of finger-happy-close people on SO. For whatever reason. (I won't be surprised if this question is voted down without good reasons)
There are times when a question saves a ton of time or a ton of frustration or a ton of money for the asker even though maybe there's only a handful of people on earth who really know the answer.
But the question gets closed very quickly and no one anymore looks at the question. WHAT A WASTE to kill a valid question just because the goal of SO (question should be theoretically useful for xx number of people on earth) didn't align with the asker (few people know the answer or who are interested in it).
There are times when a specific question's scope can't be broadened to meet SO's objective because the second you broaden it, generic and general answers start pouring in. Once the question gets a number of them, people start glancing quickly and don't bother to read all the answers and decide not to add to them and that's when the question starts to die.
Reopenining the question doesn't help much either. It's a hassle to reopen it and once it does get opened, most people have lost interest in it. I personally find the people who closed it have already made up their mind.
To make a long story short, I suggest having a sister Q&A site where these questions get a good healthy place and are moved to instead of being closed and die. Or at least I would like to see another Q&A site on the web where these questions get a chance. SO people keep saying they won't to make the Internet a better place. Have another place for those questions to be answered instead of closing them. You will make the Internet a better place by doing this.
What's too localized for someone could be a life saver for another. Let's not be too judgemental.