In my small town a new small bike shop opened up. I've sent a few neighbors with older bikes down there for parts and service, stuff I used to help them with but lately have little spare time for. They might have a chance, might, tough business to be in.

"I feel for the LBS -but they are becoming irrelevant and much less needed in today's market reality. "

I don't agree that the lbs is becomming irelevant, but with the economy the way it is people just go to the big discount store and buy something that will sort of work. When they have problems with their discount quality bike then they either give up on it, take it to their nearest local bike shop and complain that the repairs will cost more than the bike did new, or will just go buy another discount bike and throw the other one away or sell it at a rummage sale. I've gotten a fair amount of usable parts from throw-away bikes to help keep mine and the relative's and neighbor's bikes functional.

Still, it is a tough business to be in.