I usually buy my fabric at a LQS - there are two within a 40 minute drive - because I like to touch/feel, etc. But I also want to support local businesses because if we don't, we might not have them.
However...I get the impression from my most-often frequented LQS that the owner doesn't like to refer customers elsewhere if she doesn't have what they're looking for. For example, I was talking to one of the ladies who works there about wanting to do a quilt in a certain style of fabric that she doesn't carry. She looked over her right shoulder, looked over her left shoulder and then whispered the name of the other LQS which carries a large selection of them.
I would suggest to any small business person - if you're confident in your product and service, then openly refer us to where we can find what we need/want if you can't provide it. We will respect you for it and will reward your honesty with future purchases.