I must be lucky as hell. I've got four LBSs in the city I most often visit (two owned by the same regional chain) and every one of them has been very decent to work with. I have had some work done at two of the shops with excellent results 100% of the time at one and all but once at the other, but to their credit, when there was a problem they went all out to make it right. I've gotten lots of good deals. One shop price matches Amazon or other online sellers as long as it is an item the online seller stocks, not an auction or dump of one or two leftovers. I just print out the page and I've never had them not match yet. The other LBS that I do a large portion of my business with doesn't match but their prices are at or below online 50% of the time and still very reasonable the other 50%, with just a few exceptions.

As far as DIY, Yes, by all means, learn to work on your bikes yourself. My LBSs are happy to sell me parts and tools and have even taken time to give me guidance and tips. When I built my first wheelset (should say re-built as I respoked a used hub and rims) the LBS that sold me the spokes checked my build and threw them on the truing stand charging me all of $5 in service fees on top of the new tires I bought at $5 less than the online price each.

I feel sorry for people who don't have a good LBS. I can't complain about any in this area. Two of them I do 90% of my business with but there isn't one that I wouldn't use or buy from. We've got a couple more shops further away that I have visited. Not enough experience to really rate them, but all have been friendly and helpful, including some in the Twin Cities area and around lakes country.