I think the LBS is a reflection of the service industry in general. I'm not sure I understand why, but there seems to be less 'serving' in service these days.
I willingly, somewhat gladly I guess, drive 75 miles (!) to my 'local' shop - Hite's in Butler PA. They've always been straight with me, down to earth and enthusiastic. In addition to the services you'd expect from your LBS they've taken the time to teach a lot of maintenance 'how to's". While they may lose a little maintenance business they reason I'll be a better rider and they can count on me for the sale of tools and related items. Maybe more importantly I've encouraged many cycling friends to give them a try - despite the distance. At a time when most LBS are not getting a 'good grade', your reputation and word of mouth are invaluable.