Mmmh... for the sake of completeness, here is my position about knowledge categories.
I do not split Knowledge(local) between regions, like I don't split Knowledge(religion) between different cults, Knowledge(history) between different eras and so on. I have two reasons for that:
1) Because it becomes too costly and dispersive in terms of skill points; it could be doable if skill points had a finer granularity.
2) Because I'm a big supporter of striking a compromise between eyeballing and micromanagement. I'd rather guess a modifier on the spot than put up a complex system that may or may not be used.
Following from the above points, I adjust Knowledge DCs whenever a PC ought to be particularly familiar or unfamiliar with the question at hand. Knowledge(local) checks will be more difficult when you are in a new place, like Knowledge(religion) will be for obscure cults, Knowledge(nobility & royalty) will be way easier when concerning the lineage of your own noble family and so on.
If the DC drops to 10 or lower, it's common knowledge that the PC might recall even without ranks (and a PC with Int 10+ and a moment to think it up does know is).