I've got a guy like that in my area, but instead of being bitter about it I made his acquaintance and formed a relationship. He is an old retired guy, and just finds bikes and turns them over for a few bucks. I check with him periodically, and if he has anything interesting I buy it, overhaul it, and flip it. He can't/won't replace parts and he knows I'm full-service, so he doesn't mind moving his problem children to me as long as he makes a buck or two. And I don't mind taking them, as long as they are worthwile.

Works out well - he makes his beer money, and I make my nut a little further up the food chain. Value add, and all that crap.