Great post Rob. I repair guitars for a living and it requires very specialized tools. A person could conceivably what few videos and possibly figure out how to do a fret dressing. The issue is you will need to spend some serious money for the correct tools. To pay $125 to me do your fret dressing it probably way better deal. That is bit different than bike but on the other side of it bikes not properly put together can be dangerous. Tools cost money.
Given my background I invested in some bike specific tools and do all my own mechanic work. I can build wheels for instance but I don't that everyday. I recently rebuilt a rear wheel I had, and sure enough I had to think about a lot of things. I am sure it took me at least 4 times longer than a pro and probably Rob could have done in 30 minutes. My dealings with the LBS around here in central Illinois tell me I am at least as capable as any of the mechanics, however I am going to be slower. I really think the bottom line is how much a person rides and needs maintenance and repair. If you ride serious miles then probably that person should figure out and learn to do there own work. I have a friend who is an orthopedic surgeon and he rides quite a bit for a busy doctor. However given his situation he is best served having someone else wrench his bike and simply having a spare to ride when in the shop. I might add he probably your best riding buddy if you crash.
But to the point. Many cyclist and even those who just ride bikes for work and transportation they have to be more self sufficient. The charge at the LBS to do some things is simply more than they can absorb. Not a downplay mechanics but bike repair is not all the complicated but does require patient attention to deal. That pays big dividends. The LBS that do that probably are the winners. In the end my experience is very hit or miss. The first time many years ago I had to get a new shifter than broke and replaced I knew right away I was going to have to get up to speed because it was more money than I wanted to spend. i might add though the shop did a expert job and the bike was terrific I just decided I need to learn to do that.