ALL of the above - and yes, I'll shop at Joann's or Hobby Lobby, I buy lots of things online - if shipping is free and the bargain is too good to pass up. But at my LQS I walk in wiht my latest project which needs some matching something-or-other. They ooh and ahh and everyone in the store comes to look. We "show and tell" each other's projects. The workers KNOW their stock and can put their hands right on the exact fabric which will complete my work.
I may have to wait to have my fabric cut, but while I do I can admire the project of the lady getting the fabric cut. (I waited 20 minutes for Pellon to be cut at WM today. With no one to talk to and no pretties to admire.)
There's a 3.99 bargain shelf and a $4.99 one. They take their leftover pieces and turn them into 99 cent fat quarters. They have a loyalty card they punch each time I buy - I have $25 credit on one now.
Fun, friendly, knowledgable, encouraging ... sometimes I just need that fix.