I believe it could really help as it doesn't involve as many government restrictions and regulations. You are also able to talk directly with the angel investor that is interested or even a group of angel investors that want to get involved with your business. This also opens up the chance of the small business owner to pitch directly to the people that need to hear it.
Angel investing is when a wealthy individual or group puts down money in a start up company in exchange for some ownership. It would be tempting for small businesses to accept these conditions if they were offered. The problem is there are too many strings attached. A small business is better off getting a small business loan.
It is not the wave of the future. This is because angel investors have always existed. The term is getting noticed now because it is a trend. Trends come and go but there is always a small segment of people who will continue to do this kind of investing. It is usually still done with greed in mind though.
While I think it is a great idea and I love that people are being helped by it, I don't think it will be a long term solution to the funding of small businesses. Just like kick starter I think it is a fad that will fall by the wayside after a time.