I think there is room in the quilting industry for both chains and local quilt shops. They both serve a purpose and have their own strong customer base.
I also don't think either has a lock on rude employees. It's the same with quilt guilds - there are some that are warm and welcoming, and some that are snooty and exclusive. It depends on what's tolerated within the group. If rudeness to customers is tolerated at a quilt shop, that shop will lose business. Same goes for a quilt guild - if unfriendliness and intolerance (aka the Quilt Police) are tolerated, new members will go elsewhere and others will drop out.