Shawn,
From a business standpoint, there are way too many LDS's out there for the industry to thrive on all levels. The dive industry, IMO, has shot itself in the foot by licensing out gear lines to specific shops, creating no-compete clauses (territory boundaries), etc. If the industry wanted to grow, more corporate owned dive shops would arise, enabling a WalMart effect of bulk ordering and near marginal cost sales. I do recall in Houston one of the outdoor sports warehouses (like the Sportsman Warehouse of Cabella's, but some other chain) opened an internal dive shop, which was something neat to see. They offered bottom tier quality gear (jacket style BCs, split fins, low quality masks, and other such cheaper gear) along with classes and air fills. If a large corporation could model after the Bass Pro Shop and bring together all lines of gear and have a decent supply on hand, along with having many locations across the US, then we might see large scale growth.
BUT, this would essentially keep most from enjoying the LDS experience. When AAS was open, I was glad to buy nearly all my stuff from Mike. I think it's a lot better thing to do rather than buy it off line and ask LDSs to service your crap. And being able to have someone available to help you rig your gear together that first time, help with your gear configurations, and just to bulls*** with is worth much more than the difference from buying your gear from leisurepro any day.
EDIT: Just as I wrote this, Rusty wrote of GANDER MOUNTAIN in Houston shutting down the SCUBA area... Great idea, but just poorly implemented on their behalf.