Maybe bike shops should sell inexpensive bikes
Instead of asking or demanding that WalMart, Target, KMart et al sell good quality bikes maybe the LBSs could sell a sub $200 bike. Trek, Giant etc could likely provide a lower cost bike to dealers and maybe the dealers could sell this bike at a reduced markup or even a loss hoping that the money will be made back in accessories, service, or upselling. It also would bring more customers to the local shop.
It would also help if the shops had the current inexpensive bikes in stock.