I do a mix although I am buying more online--for the first time more than 50%. I have many great LQS around me but you cant turn down alot of the online pricing plus you dont have to drive from one store to another if they dont have what you want. I dont expect them to carry 6000-12000 bolts like an online store.
Clicking is a whole lot easier and cheaper than driving. I try to spend for "unique" items or for classes at my LQS. For basics like notions/threads, etc, probably Joann's online because the local store is a nightmare. For alot of fabric, online fabric stores.
Kind of like our local bookstore that is having difficulties because of Kindles and Nooks. I do appreciate her shop but she really just can't compete for my business since I now have a Kindle.