The smart small format stores like my local seek them out because they are the type of inventory that moves quickly.
If you honestly believe that you'll never want anything other than what moves quickly then your new business model will work for you. The first time you want something that's not so mainstream, things won't go quite as well.
In the end for me personally there are so few new things that interest me and most of them are available at my small local format store just as easily if not easier than the larger format one.
1. Just because you're not often interested by new things doesn't mean that everyone feels the same way.
2. I emphasized the part of the quote that indicates that you actually do understand that the new business model won't/doesn't always work for you.
Trying to be everything to everyone does not mean they will have what I am looking for.
No, but having several traditional LGS in an area will definitely help insure that people can look at things they're interested in buying because inventory and philosophy varies from LGS to LGS and because the traditional LGS is based, at least to some extent, on catering to the customer even if it means stocking some items that don't move well.
Your new LGS business model that strives to match online pricing has much less chance of having what folks are looking for on hand. Sure, it will probably work for most people most of the time, but the fact remains that if we allow this new format to take over we will have to give things up. As mentioned above, you're arguing for this new format and in spite of that even you have already admitted that it has failed you in the past.
...it has a better chance of working than the old model does....
It will work great for the business owner. It will work well for the "average gun buyer". It won't be so great for those who aren't the "average gun buyer".
Your own words have already proven that this new business model has already failed you on occasion.
So unless you like going to a shop and not being able to handle what you want to buy, unless you like a business model that you know is more likely to fail you as a buyer when it comes to selection/etc., you will be disappointed/unhappy on at least some occasions when/if the new business model takes over. Therefore, it seems a safe bet to say that at some point in the future you will mourn (however slightly) the loss of traditional LGS even though you clearly don't want to admit it right now.
Maybe you're different, but the real issue here is that what a lot of people want is to feel good about using the LGS as a selection tool and then buying online or from one of the "smart small format stores" where they can get the good price that the LGS can't provide because it's also in the business of helping buyers decide what they want and what fits them as opposed to just moving guns at the lowest prices possible. They want it all.
I see a lot of rationalization about why it's a good idea for LGS to go out of business and become obsolete, why it's a good idea for "smart small format stores" to take over. The problem is that we, as gun buyers, will be giving things up when that happens and some of the things we give up will be things we will miss.