I frequent LQS all over the US. Some are better than others. The selection really, really varies as does the customer service. My truly local quilt store is schizophrenic depending on which owner you get. My favorite actually does not have the best service but does have the best selection. My friend is picky about them greeting you, personally I am more interested in stocking what I want.
I also think it is what you bring into the CS relationship. Yes everyone should be greeted but you as the customer may be giving off body language that you are not aware of. Or it could be they just have bad employees. Those that work with the public everyday know what I am saying. Certain people are hard to read and the less confident salesperson will step back. My GF tells me how she was shunned in this shop or that one. Then she walks in with me and most times, not always, has a different experience.
I have a friend who owns a bookstore. Reading like quilting is a hobby. Her store is wonderful and is uber successful. Anyway, she brought up a great point. Once B/N or Amazon is the only game in town, then they control the market.
I buy notions at Joann's and Hancock's but I support all those women who love quilting so much that they are willing to step out there and put themselves on the line to own a LQS which is usually not a money maker. Some are better business people than others and more suited to CS and you can tell by their success if it was a wise choice. But really think if you could deal with all the hassles of having a LQS, I know even though I could, I would not because IMHO just as we have noticed here, you cannot please people.
Once you lose the LQS, you lose the advanced classes, advice, support and knowledge that is provided there. You arent going to get that at Walmart or Joann's or any other online oe ebay store.