My LDS branched into surfing, clothing, and more vacationer snorkeling stuff. They wouldn’t be able to make it on scuba alone. Abalone diving got shut down and that was a huge part of their business with all the freediving gear rentals and sales of ab diving gear including suits, masks, fins, gloves, booties, snorkels, floats, weight belts, ab bars, measurers, goody bags, etc.
So now they’re trying to sell more exotic trips to a higher end clientele, when years ago they were chartering boats in Monterey a few times a month to a bunch of rag tag locals.
There were a lot more local divers around here years ago. Not so much anymore.
To answer the OP’s question “Are all dive shops bad”. I think it’s evenly split 50/50.