This is definitely not the first case of this happening. Trading on localbitcoins has been extremely risky when you are doing local trades because for some reason you are dealing with someone that does not have a bank account, doesn't want to use other safer and less expensive payment methods, only wants to deal with cash which is untraceable and wants to apparently only deal locally when he's not even a local.
If you decide to trade with one locally, make sure that he has 100+ feedback. Make sure that all his docs are verified and make sure you trade near a bank or shopping mall. And don't do large amounts either, bring a weapon of some sort jsut in case.
Just when people thought that F2F transactions are safer than online transactions, such incidents prove that those who deal with bitcoins are far more dangerous. We can't really rely on who and when will turn out to be a scammer and craigslist is always targetted by scammers/hackers. Even earlier a man was robbed in a car when he went to meet the buyer in a known place. He was caught behind and asked to transfer all the coins. The police also doesn't help in such cases which is sick. No CCTV but IP addresses can be tracked. Their phone locations, some proof can be got?
Your point is valid but practically no one is going to track down IP addresses. They prove absolutely nothing because I addresses can change over time by themselves, others can fake your IP and you can connect to a VPN yourself. The biggest concern for online dealings is fraud whilst offline it's your life.