You are right! $50/hr is outrageous! Maybe we should take our bikes to attorneys for repairs.
Seriously, though, folks. Small businesses have to charge fair prices to stay in business. They don't buy in quantities of millions like Wal-Mart or KMart. When it comes to tecnical things like electronics, cars, or bikes (yes, they are technical) I learned long ago that you get much better service at a specialist shop with knowledgable employees. I buy a lot of stuff from my LBS that I know I could get cheaper and often faster online. Does that mean I will pass up a super deal online? No, but if there is something I want or need that my shop stocks or can get, I most often buy it from them.
When it comes to working on my bikes I do most of it myself, primarily because I just enjoy it and get a sense of satisfaction. Many time, though, I will gladly pay the shop to do things that I know I could do myself because I know I will not have time to do it any time soon.
Next time you think your LBS or any small business is expensive stop and think a minute about the fixed costs of running a business. Rent, utilities, loan payments on inventory, salaries, expensive specialized tools, etc., all have to paid every month whether you sell anything or not. Believe me, your LBS owner is probably not driving around in a Mercedes or BMW, and bicycle mechanics are as chronically undervalued and underpaid as teachers.