I believe it is because it is free and anonymous.
With ebay they have your info. So if you encounter a dishonest seller or buyer, at least you have a chance at some recourse. Also there are selling fees, so it's less likely for someone to make up an ad just for kicks.
With the local paper, same thing, they got your info and unless it's the super savers it costs to post. So it is much less likely for someone to post unless they are serious about it. And since it requires talking to an actual person on the phone to answer the ad, it is less likely for someone to hide behind the internet and fake interest then not show.
I subscribe to several local "cheapcycle" and "freecycle" groups, and it is a constant battle of the same thing. A LOT of no-shows, and a quite a few dishonest sellers. It gets old, but once in a while it becomes useful.
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Winter daily driver, parked most days right now
Summer daily driver
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