No, that's not the reality for the majority of divers who don't live in BFE at the mercy of the one LDS within a 60 mile radius. Most dive sites in this state have compressors on site, anyway.
This whole presumption that one must charge high gear prices to make up for classes, fills, and service is wrong. There are plenty of shops that have shown you can charge competitive prices on gear and provide all those other services and be profitable.
No thats your presumption that there will be a compressor at your "dive site".Not all states have that in their locale..My sites are anywhere from 1-20 off shore.I do not think there is an extension cord long enoughto supply the power for a compressor.Maybe in your state what you call "dive" sites are naturally/man made oversized pools,what you call a quarry.There are plenty more shops closing than opening for they have discovered that the pool of new customers is limited and if they do not sell gear at a profit the price of courses will have to go up.
What you are looking at is a very small example of stores that can survive by selling what you call competitive prices and be profitable.For most facilities everywhere that is difficult or impossible given the small amount of customers and new people to go around.The season in the northeast part of the country is short,realistically it is only from June-late June at that,to maybe mid September.Yes there is diving and classes going on in other months here,but for the most part that is the "sweet spot" here.
Rent/mortgages,electric bills,taxes,insurance,telephone,all these bills have to be paid in the off season ,if gear sales are gone and all this plus for most pool time rentals have to be paid how is a lds to survive ..Lets say a store does 100 ow students a year(typical ma and pa store).NO gear sales,the class costs $250. for the classroom and cw portion,thats only $25,000. a year..Out of that your rent,if you are lucky,is $2000. a month,thats $24000.a year. Double the amount of students and it still does not work.Still have all the other expenses.Lets say you sell m/f/s and you make $125.profit on each sale,thats only $12,500. a year..HOW DO YOU STAY IN BUSINESS if no gear sales from classes and they all go to online vendors???