It seems just the opposite for me here in NJ. Where as my LFS's do not really sell equipment etc because they cannot compete with online prices, it has made them to be dedicated live stock markets each of which has there own specialty cichlids, oddballs, rare fish. I'm able to get fish locally that most people can't even special order.
This is also makes for great healthy fish I have 4 stores that are basically fish only In a 20 mile radius not even counting the big box chains that have a store every mile.
I think it's great the good stores were able to adapt to be able to survive having offerings that can't be competed against.
One local LFS owner takes himself and a few employees a few times a month for collection trips to SA, Africa, Asia, etc. A lot of stores breed there own F1s but how many do you know that actually do the collecting as well when they can't find a good importer?