For me, it comes down to convience. Now you might think that means internet ordering, but more me it is more convient to buy at the LHS than online. We have at least 3 really good shops within about 30 miles. The closest one is Hobbytown. That is where I do 99% of my purchases. The store manager is one of us. He is at the field a lot, he is a CD for events at our club's fun flys, and he is probably going to be president of our club next year. When the store changed ownership, he sat down with the new owner. Armed with sales figures for the previous year, he showed the owner how much of sales was RC air related. The owner gave him free hand in ordering. Now about 40% of the store is planes, from park flyers up to gassers. They match Tower's prices and give club members 10% off. I have never had to ask for more of a discount.
The other 2 stores are mom and pop shops. One is more expensive, but carries rotorhead equipment (helicopters). The other one is less expensive, but quite a drive for me.
I have never bought rc airplanes or parts off the internet. I hate having to have stuff shipped to my office and making sure I am there. If I ship it to my house, then I get 20 questions from my wife about why I needed this or that. Buying local gives me the chance to get it into my workshop unnoticed

For my model railroad stuff, I order online, since the closest hobby shop for railroads is over an hour away.
One more thing: the local shops support our club events. Planes to raffle off, inexpensive parts for the hourly drawings, etc. I support those who support me (our club).