I almost went the bikes direct route (or their seconds and blem site bikeisland.com) for my last 2 bikes but after weighing the options against a local shop, I went with the shop. I know I "spent" more and didn't get the higher end components, but I do have 2 brand new bikes (a Trek 1.5 and 3500 disc), a 3 year warranty on both, and I spent about $1400 on both bikes over the course of a month.

A next purchase will be a BD bike, or Fezzari (another online/mail order bike company that has some great looking stuff). Why? Because I know what fits me, and in a few years I'll know where I am as a cyclist and what will benefit me, but for now I wanted a designated commuter I can beat on and not have to worry about parts, as well as a back/fun bike I can do the same to, and I have that.

BD and similar business models have their place, and I believe it creates better competition, but I wouldn't throw a LBS away just because of cost. I have a great relationship with mine and have spent a few hundred outside of the bikes on stuff from them as well. I'd rather have a friendly smile walking in because they treat me well and I treat them to my hard earned monies.