LBS are still around and still kicking, despite the news of their demise. I have three shops within an 8 block radius of my house. And good ones, selling Intense, Santa Cruz, Orange, Pinarello, Merckx, Masi, Colnago, Independent Fab, Orbea, Scott, Trek, Fisher, Lynsky. Expanding out to within a few miles there's also a Performance and an REI (being near hipsters and college students certainly helps, I'll admit that). I didn't pay full retail for the Blur I got in 2003. Loyalty, loyalty, loyalty. Same with bikes as 4WD parts as used record stores, repeat customers who bring in a sixer once in a while get remembered.