The Internet has changed how we consume/buy just about everything. Hifi is just one tiny blip on its radar. The businesses who are doing relatively well are the ones who've embraced it. The ones who haven't figured out how to take advantage of it (in a good way) will struggle more and more each day until they figure it out or go bankrupt IMO.
There's really no easy answer, as many here have stated and everyone here has proven.
I'm old-school in 35 years of age. If a dealer has what I want, has properly demoed it for me, and is within reason in price, and most importantly stands behind what he sells, he'll get my business every time. If they act like an arrogant snob and/or bash what they don't have on the floor, my business goes elsewhere.
How I bought the my B60 was interesting... I couldn't afford a new one. I called my local dealer and told them I was looking into a used B60, and asked if they'd mind if I dropped by to hear one if they had one on the floor. They didn't have one, but told me to come by anyway to hear other Bryston gear to get a general sense of what they did. The gentleman let me hear a B100 and told me what he believed the differences were between the two. He didn't get me into the store and then start showing me other stuff in my budget range like a 'bait & switch' tactic. Actually, I asked about something he had in my range and he said 'but the B60.'
I haven't bought much from him since, as most of his stuff is beyond my means. I've bought a few cables from him for a few reasons - he had what I was interested in, he had an agreeable return policy on them if they didn't work out in my system, he charged an honest price for an honest product and stood by said product, and he treated me like a valued customer even when there was no prospect of profit. He did everything the right way. If/when I can afford to buy stuff he has other than a few cables, he and a similar type local dealer will be my first 'go to' people. It'll ultimately depend on what sounds best.
For the record James, that dealer is Audiocomm, formerly in Greenwich, CT. They recently moved to Norwalk, CT I believe. Great people.