I don't think it's a big mystery why Reed lost his hometown of Corning. Before Massa melted down, Reed made a simple calculation that the only way to win the election was to be pretty far to the right of Massa, especially since the possibility of a Tea Party spoiler was a real one (as Janice Volk showed). One of the tenets of the Tea Party is that stimulus money is bad and should be refused by politicians. So, even though Reed had supported Corning's request for $210K in stimulus money to buy some new buses, he switched positions and opposed those buses as soon as he declared his candidacy for Congress.
Being for something one day and then changing one's position when it's politically convenient is bad enough, but doing it in a way that harms the people you represent is even worse, and Reed committed that political sin in order to advance his career. The fact that Reed took what could pretty fairly be considered "stimulus money" to remodel the Bath Masonic Temple made it even worse.