Good to see guys out supporting the local scenes. My experience has been all over the board. The last small show I was at had a huge card (probably almost 15 fights) and only 3-4 guys that I felt were ready to be out there. Still, it was in a real venue and looked to be sold out with the fans enjoying the action. I've been to some others where every fighter was at least in shape and had some skills. But one of the great things about MMA is that regardless of the skill level guys have to fight hard or they get embarrassed and hurt, so there's always good energy in the fights.
Funniest comment I heard about small-event shows was a guy who said something like "I know at that skill level that most of the fights are going to be won after a failed guillotine attempt"...keep that one in mind next time you watch one, it's actually pretty accurate.