From an "insider" that I know, many W-M stores are getting rid of fabric and the rest are going to go to the lengths you described. They consider cutting fabric to be "labor intensive" and don't want to pay staff. If you look at what's left of the crafts, it's almost all kits. They are getting rid of the single items like packages of stickers and going to scrapbooking kits with everything included. I am furious!! Those of us with experience don't want kits, we just want the pieces we need! But to them it cuts down on inventory. To me, it says they don't care enough about their customers to give them what they want. It also means that I need to travel several hours one way to get what I need. Well, guess what? I'll get everything else I need while I'm there and no longer support my local store.
And don't kid yourself--the craft department is one of the biggest money-makers they have, after health and beauty. At least in my town (and most smaller towns without access to the larger chain fabric and craft stores)! That's why it is located in the very back of the store--so customers have to pass by everything else in the store to get there.....