My take on citations for local search is that they're dealt with by an algorithm other than the organic algorithm, one which looks to verify the correctness of the NAP and qualify the sites upon which the citations are found and that the sites where the citations are found are disregarded by the organic algorithm.  So, if citations occur on a bunch of local database sites, like yp.com, for example, and they also come with links, the fact that it's a site dealt with by the Local algorithm means that velocity of links add isn't an issue.

I could be wrong though.  I've been wrong before. : (

How many citations are  you adding in what period of time?

Matt,

The duplication of template won't hurt you at all. It would be worthwhile to vary the images, though.

As for the linking between subdomains , If the content is good and unique on both sites, link between them in a manner  that is appropriate for the user and the subject matter. I wouldn't link between directories from the footer if you already have navigation that has links to those directories.

Hey Bob,

It's not something you hear much about and certainly not something I've considered in doing work for many local clients, but I think I hear what you're saying. Typically, I'd go to UBL.org, choose a package for the client, let the citations start flying, and be glad that it getting done as quickly as possible-- without even thinking about velocity.

I went over to David Mihm's 2012 local search ranking factors, and looked specifically for info on that and interestingly, that's not mentioned as a factor (which might be why I'd never given it a  thought.)

What do you feel the tool should do that it's not doing for you?

One of the hardest things about  keyword research is building a comfort level with the tools at your disposal.  Since none of them measure things in the same way, comfort tends to come from experience with them over time and even then, there can be more than a little grey area when it comes to choosing one term over another.

I can tell you that if you're here for the keyword difficulty tool only, you may not be getting your money's worth out of your subscription.  It is a tool that you want to use in combination with other tools--many of which are also available here.

Relax, take a look around, try some stuff out, do some searches in the Q&A and round out your knowledge a little.  You might find those things will help you just as much with your keyword research as the tool will.