I concur with every word. But I don't want the fix to stop there.
Viewing Local variables is impossible in the KM Editor, and I can understand why, because there's no correlation between the visible macro and any instance of the macro. However there is a cool way to provide the functionality to display Local variables. And that is to display it in the Debugger. The Debugger actually DOES correspond to an instance of a running macro. Here's how this could be resolved, with a new Action that looks like this:
I won't actually say this would be an easy fix, but that's exactly what I'm thinking. 
This would actually really help me, because I find myself wanting to inspect Local variables. Because of the lack of inspection ability, I often find myself avoiding them until my code is perfected. And it's never perfected.