You've made two errors with your statement.

1 - by what measure is there so much love for the LBS? I would guess that you are referring to posts you have read indicating support for the LBS, but a much more accurate measurement would be twofold. First, what is the trend for the number of local bike shops over time, and what is the current market share of online sales relative to LBS sales? Comparing the two trends should tell you where the love really is. The emergence of huge, profitable online bike and parts retailers points away from LBS love.

2 - you had some bad LBS experiences and you are extrapolating that and applying it to the rest of the world. I've also ran into a few bad apple LBSs however that does not mean that all shops provide shoddy service/equipment.

When you walk into an LBS, you cannot bring with you the attitude that the LBS is going to fulfill your every desire as if they are an online retailer. That's what the interwebs is for. LBSs, while they do have access to manufacturer catalogs, do not have the vast inventories of online retailers and a stock that is physically limited by floor and shelf space. If you want a Defy but the LBS only stocks Cannondale and Surly, then you can either compromise and buy either of the latter or take your business to the internets.