I have scaned my own and am happy doing it that way so far. My scanner isn't the best but it works ok. I like to be able to have them sorted and just scan what I would be working on.
Have you seen the quality of either of these places? My aunt had some old photos that she had scanned locally and they were not good quality! Alot of them were blurry or had dust spots. I'm guessing these bigger online places are good quality but if you do it locally, just make sure they do a good job!