Fair enough Platy. The two local shops that I frequent -- one actually puts the MSRP on the tag, along with their price. The other doesn't, but they sure are aware of the MSRP and will even pull out their dealer catalog to show customers.
With the exception of iAnything, almost nothing is sold at MSRP in this world. So I disagree that the actual selling price should = the MSRP. I do agree with you that BD puts some pretty inflated MSRPs on most of their bikes though. I tend to ignore the MSRP and simply go straight to a comparison of components. People can argue frame quality all they want - but we don't have the details to really know the truth.
I want my LBS to stay in business, make a profit, put food on the tables of the guys who work there, etc. But I work hard for my money as well, and if I'm getting a hardtail MTB for my daughter (like I did this past summer) I'm going to be very hard pressed to spend $750 or $800 on that Rockhopper in the LBS when I can get arguably more bike by going to, in my case IBEX bikes, and spend $500. Now...IBEX went out of business, so I coudl get a little burned. But my 11 y.o. daughter isn't likely to break the frame anytime soon and the components will all go on a new frame if she does -- and I'll still be less than that Rockhopper in total cost. There is simply too much price gap and not enough value add from the LBS to fill it in that situation. I asked if they could do better on price, they said no. I'm not sure where the tipping point would hve been -- the IBEX was normally sold for $600, with an MSRP of $750 (heh) -- so maybe if the delta was less than $100 in price I would have spent the extra and stuck with the LBS. If that doesnt' give the LBS enough profit margin, then the manufacturers need to revise their pricing model to get in line with the reality that their dealer network is suffering.
A LBS is a business, not a charity.
BUT -- I would very much look down on people who would go into their LBS to reap their knowledge and expertise, with no intention of buying product there.
I've said it before, but direct sales will only continue to grow. A smart LBS will find a way to take advantage of that reality.