Wouldn't have a problem if if worked like a IFF of some sort.
You can turn it on and off, if off you wont show up in other than the total number which should remain if on it works as it does now.
The alternative would be to tie to sov and perhaps some structure with the probably new sov system that will come sooner or later.
Perhaps the alliance holders have to have some sort of system scanner that generates local for the people they want.
0.0 should be risky, no problem, but the risk must match rewards which they generally don't, from what I understand you make more over time from lvl4's in empire than any action in 0.0 but 0.0 has far far more risk.
Removing local and replacing it with systems as the ones some suggest, for example the auto scanning scanner with a 20 au range (cloakers anyone??), would only skew the risk even further making it completely worthless. This hurts miners especially since hulks accelerate like a brick (heard 17sec from 0 to warp...).
Balance is important
