You can now add options (a javascript hash) to the local search control to modify it's look and behavior.

for all available options, please go to:
http://www.google.com/uds/solutions/localsearch/reference.html

example usage:
@map.control_init(:local_search => true, :local_search_options => '{suppressZoomToBounds : true, resultList : google.maps.LocalSearch.RESULT_LIST_INLINE, suppressInitialResultSelection : true, searchFormHint : 'Local Search powered by Google', linkTarget : GSearch.LINK_TARGET_BLANK}')