>It doesn't say anywhere that it cannot be advertised in a small town.
It does say in the law [1]: "there are not sufficient workers who are able, willing, qualified (or equally qualified in the case of an alien described in clause (ii)) and available at the time of application for a visa and admission to the United States and at the place where the alien is to perform such skilled or unskilled labor".
The rules of DOL are just guidelines how they are going to determine this but they are not the law. I will argue that if you are planning to publish your job ads in a small town newspaper you do not believe yourself that there are no "able, willing, qualified and available" Americans for your job.
>I will argue
You, or the government in this case, should argue that in a court of law. So far, the government has not won any of these cases in a court of law. And I mean over the last 2-3 decades. The number of successful prosecutions will be in single digits. It's a bit like voter fraud when it comes to actual numbers.
“Must be widely distributed in the area the job is located” kinda limits the small towns that can be used. Not to mention the increasing difficulty of finding a small town with a newspaper.