I've always found that you can find a wide variety of qualities in any location - LQS, Walmart, Joann's, or online. Price doesn't always matter, especially when shopping sales. I use a wide variety of qualities depending on the purpose of what I'm making and how much effort it takes to create.
Just FYI - I once purchased a fabric at Hobby Lobby that I later found at a LQS for a much higher price. The fabrics seemed to be very different quality. I can't explain why. They were the exact same print in the same color. I do know that they could have been mistaken for being the same, for different prices, when they actually seemed to vary in quality.
I have always felt that when I spend $11/yard at a LQS, I'm not only paying for the fabric; I'm also paying to keep a service going. I value my LQS very highly. I not only regularly pick their brains for information, I also love to spend hours taking their classes and just browsing their aisles. I consider the higher price an investment in a resource that I know struggles to survive.
I know that not everyone can or will spend that much at a LQS, but I like to whenever possible, and I must admit that I, too, have felt that some members of the board sometimes make comments that seem disparaging about those people who choose to spend their money on more expensive fabric. It seems like some people think that those of us who spend more are less than intelligent for doing so, as if we're being taken for a ride. I feel, however, that a person's disposable income should be hers or his to do with as he or she chooses. As long as my family isn't going hungry and the bills are paid, I should be able to spend $11/yard without being looked down upon if that makes me happy, and it does. It's just like someone spending $12000 on a sewing machine instead of $400 for a machine that works perfectly well.