Search for Connecting Threads - lots of opinions. Some love it, others not so much. Myself, I think it's between Joann's and LQS quality.
As for the plastic bags, I think there should be a tax on them. We need to start paying for what we use. If you choose to use something that is wasteful and polluting to produce when there are relatively harmless alterntives, you should pay for it. It's a sin tax just like any other. I never take a plastic bag when shopping.
As for fabric prices, let's not panic until there's something to panic about. I'll wait and see what prices actually end up being at LQS's and online before worrying too much.