I'd say it most certainly killed the sort of dedicated small print classified ad publications you'd find at store checkout counters. But maybe those small pubs like The Want Advertiser (in Boston) were few and far between.
They are all gone. Many of them folding before the internet became popular.
there is the msa level papers but they don't get local enough. There is county today which publishes the minutes but not the important details. Real reporting is important and I can't find it for local issues. Anyone can report on national issues and I can still find that, but not local.