I love my LQS's! My purchases fit into 2 categories, fabric/thread that I specifically need for a project and fabric/thread/books/notions that I purchase to inspire me and as the basis for future projects.
I buy my specific project needs from LQS, on-line small sites, on-line mega-sites and Joann's, in that order. If an LQS has it in stock (or a close enough substitute), I'll pay the premium to try to keep them there. Because if they weren't there I would lose their counsel on 'What's the answer that I can't see', 'Which quilting pattern will accent the fabric/piecing the best', etc.; I'd lose the sensation of handling Hoffman, Kaufman, Moda, Marcus, Kona Bay fabrics; I'd lose the instant gratification of a quick show & tell. But if they don't and I need it, I'll try the other alternative.
But I buy almost all my inspirational supplies from LQS's and I'm lucky to still have more than 10 within an hour's drive of my house or work, though it looks like we'll lose the Quilter's Coop in Temecula at the end of the year.