While WF does have issues, in my time working there I got the impression that the company/management really do believe that they are doing the right thing, for the most part. They have and will pull a company's products for doing things that violate their contracts and principles, such as adding aspartame or MSG.
The food-like products are there because conventional wisdom still holds those things to be healthy or desirable, and people want to pay money for them.
They do stock some local products, and if they don't, you can often talk to the buyer in a given department to ask for a specific thing from a specific place. The buyers at each store have quite a bit of discretion, and a good one will at least look into things when customers ask. The WF near me stocks quite a few kinds of local honey, and meats from a couple of farms within a couple hundred miles (not really sure where they are). The one near my hometown stocks the locally-roasted coffees. Most stores I've been to will have a small "local" section for non-perishable stuff, such as jams, honey, etc. A lot will buy special baked goods from local bakeries, for stuff they don't make themselves, or that already has a name for itself.
While everyone wants local produce, there are growing seasons for everything, and it is not always feasible to have everything you want grown locally at all times of the year. When peaches, lettuce, or berries are in season here, they are sold with a big "Buy Local" sign hanging over them, often with the name of the farm where they come from. Same thing with apples and grapes. However, the apples they sell when the peaches are in season are very rarely the local ones.
Overall, I'd say that they are definitely not perfect, but more good than evil.