Bottom line is we need both kinds of stores - without the Joann/Hancocks/Walmart options, imagine what the prices of fabric would be. Then the demand would drop and the variety of fabrics available would shrink.
What's likely to happen in the future is that the LQS 'storefront' will be gone but they'll still operate online. Less square footage and staffing woes should keep them in business for a long time.
IMHO