Somewhere in-between, I think, depending on what my crimes are. Not having instant universal bounty if I touch an apple is a good thing, but I feel a criminal wanted for murdering an entire town should have a degree of notoriety elsewhere. Like a thief might be wanted locally for multiple robberies, a murderer gets their wanted poster up in the next town over, and a serial-killer or someone who kills/robs a high-profile target (like killing a count, or robbing the equivalent of those vaults in Vivec) is Public Enemy #1.
As often happens (or at least as often as you post, which isn't often enough, IMO) since Rhekarid already responded, I pretty much don't have to do anything other than agree.
This is just what I'd prefer. It makes sense that if you commit a minor crime, the only people who are going to be concerned about it are the locals, but if you commit a serious crime, word's going to spread, and the more serious the crime, the further it will spread. I'd only add that I'd like to see that process happen at a reasonable pace as well - that is, certainly no faster than it would take for some official to say that the next town over needs to know about this, some messenger to make the trip to that next town, and the information to be given out. Even if it was a horrible crime that gains nationwide notoriety, it should take some time for the word to spread.