Oh, you better believe that I buy fabric at Walmart! I am choosy, but I'm choosy in the LQS, too.
I have had good luck with the fabrics I bought, too. Now I'm noticing an upward trend in pricing, though.
I've purchased the $1.50 yard fabric, too, as long as I know it's 100% cotton. It works fine for what I want to do with it.
I am stocked up with Christmas fabric, too, because last year I happened to walk into the store on the day they marked it down to ---- 68 cents a yard. I missed it this year - all the Christmas fabric is gone, and I didn't even get one yard of it!