I'm fortunate to have a great LBS as well. I only wish they carried more brands.
As for the Coasting concept, I hope someone wakes up and smell the coffee. If it gets more people riding, great, but I'm pessimistic that it'll get only a few. I've a hunch most who do buy will ride once or twice and then hang it on a wall like a Huffy.
Also what happens when they get a flat. It has hubcaps for crying out loud! I'm sure I wouldn't have much trouble getting the wheels off, but what about the folks the ride is aimed at. I wish them goodluck, but I just don't think its going to have the effect they hope for.