I've had similar experiences, and I can't remember the last time I was in my LBS, it may have been in the early 2000s to pickup an inner tube. I now have a fantastic tool set and feel well equipped to take on any job with any of my (10) bikes. Bodged jobs, bad advice and length of time to get things done all culminated in me learning how to do things and buying good tools. It's something I've never regretted and has given me a freedom knowing that no matter what component wears out or I wish to upgrade or change, I can do it all in my time frame with no extra costs. Also add in the fact you can usually -with a little work -find the same advice or wisdom of the crowd from the internet.
While I do like to support local businesses, I've never really understood the "buy from your local bike shop or else they'll go out of business!" mantra. Yes, of course I would like to support my local businesses and I try to. However, business models change -do local bike shop owners buy their groceries from a corner shop? Of course they don't, (at least for a family) grocery shopping is usually done at a supermarket or warehouse. Why? Because it's so much cheaper (and I'm sure since the advent of supermarkets and warehouses loads of corner shops have gone out of business).
I think local bike shops will have to continually innovate or change -as other businesses have done -to survive; whether that be a coffee or pastry adjunct or something else of value that can draw someone like me in. I don't think most can survive just selling bikes or charging 20-50% more for components found on line -and the amount of anecdotes on here concerning worryingly bad service, including mine, doesn't help either.