I think both the internet and LBSs have their place. I try to support LBS when I can, at least the good ones. I don't buy everything from there, but reasonably priced stuff that I can't get for much cheaper online (depending on the shop and the price, I'll buy spare tubes, water bottle cages, tires, freewheels and derailleurs). Many of them will also offer you good deals that you didn't even ask for if you are a regular customer (such as giving you a handful of skewers or other spare parts for free). they're also very convenient if you want to get a part to get your bike on the road without having to wait a week. There were two shops back in the city in Indiana where I came from, a larger shop with 4-5 staff members, and a smaller shop that was owned by a guy in his fifties but usually only staffed by a young man in his 20's. I found I got better service and prices at the smaller shop (although their selection was sometimes lacking).