Interesting that a bike shop here (in Reno) is doing great going the other way. We have four or five pretty decent LBSes here, plus an REI with a good bike department. Most have been pushing high-end rides for several years, but a friend of mine who owns one of the shops has recently turned around. When non-cyclists come in and want something they can ride with their kids or hang off the back of the RV, he doesn't try to stun them with the high end. He asks a few questions, then if it's appropriate steers them to a $300-$450 comfort bike or hybrid. That's what they need, most of the time, and he says a lot of people buy two, because they've heard you can't get a decent bike at a real bike shop for less than $1500 or whatever. When they find out they can get what they need for less than a third of that, they'll buy one for their spouse, too. And he's jacked up his staff so they fix the $400 bikes as fast and carefully as the $1500 ones.