I really enjoy it when people roleplay in local! As long as it isn't right next to the chill-zone in Grounds, so it doesn't flood the chat (I don't personally mind it, but I know some people do). I purposely go out of my own way to creep into Eastern to see if anyone is roleplaying. Call me creepy, but I really enjoy listening in!
For a few of my other characters I'll switch to party. I do it frequently for characters who aren't canine or feline. e.g. I roleplay my TKC character, Rotfish in party as it doesn't make sense lore-wise if other species could see him. ^^'