I started tabletop gaming back when there were few stores, no retail store and play space, and finding wargaming space was quite difficult. It's not a big leap to credit the HUGE expansion of boardgames, mini games, and RPGS over the past 25 years to exactly the boom of the LGS, and those that offer table space.
I think any retreat to those pre-boom days is a huge mistake for any Game company or area that "lets" their LGS die. Spartan is surrendering to the British model (where space economics dictate clubs, not stores), but they're going to pooch their US market altogether, just when they should be growing it. Distributors are dropping them both because sales have not sustained, and things like the Corinthian Club. Distributors need to see positive steps to enhance business, not negative.
Reasons why:
1) Properly run stores grow community, create trends, and bring in young and old. Clubs tend towards exclusivity, certain age groups, and grognards start to dominate - its a natural progression even from noble intentions. Our 90's game club, Dead Generals never had one female member, nor member under age 20. And while certain folks were involved, you had to pass a test to join!
2) Stores can support multiple games and multiple nights of the week. At our current LGS, if I had no relationship and was inclined, I could literally game every single night of the week in a game I'm into. Sunday- Historicals; Monday - Spartan; Tuesday - Malifaux; Wed - Attack Wing, X-Wing, Sigmar, WoK; Thurs - Guidlball and Infinity; Friday - 40K, BFG, etc ; Saturday: Boardgames, Warmachine.
At a game club, it's ONE night a week. You can't make that night, tough. And one game will tend to dominate at a time, simply to ensure a pool of opponents. This was fine back when there were only a few games anyways, and the main debate was between GW or Historicals. In today's divergent market, the outcome will either be lots of losers, and back to only a few monopolized games, or lots of balkanization and disputes and splitting game clubs into smaller and smaller coteries.
3) LGS's can provide mass space for tourneys, reliable terrain, and support the impulse purchase.
Space-wise for clubs, free space is RARE these days. Rents have risen while wages have not, so finding a large enough space with tables is hard. I look at metas now without LGS's: In Toronto, they've found nothing, and some I know haven't gamed outside their homes in months. In NH, they've been gaming in a pub with all the hassles and noise that entails. Our old club used the cafeteria of a Retirement Home - but we couldn't do that today because of insurance reasons. The public spaces in town, libraries and police common rooms, offer about 4 tables; while our LGS offers up to 18. Coffee shops and bookstores offer coffee-shop sized tables, and many close by 8 or 9.
I've lost track of how many games I became obsessed with following impulse purchase. Clubs offer none save what I get with Amazon 2-day shipping. If you've never contrasted the two, its not the same.
LGS's aren't closing because of some inevitable business trend. They close because WE, the players, are choosing to let them. Kickstarter and online discounting had become so prevalent in some places (areas in aforementioned Toronto and New Hampshire) that the link between closing LGS and those consumer habits are clear.
It's inevitable change, you might say. It's free market forces. It's the future, and for the best. I say thee nay. Amazon is not free market - it's a monopolizing bully that reduces choice, not enhances it.
First music stores closed due to discount sales and file-shares. There's nowhere to find out what's GOOD, that isn't a club or and ad. The result is few musicians can make a living without a lifetime of touring. The quality of music declines. And we trade the likes of David Bowie and Prince for Nikki Minaj and Justin Bieber.
Then book stores close because of e-books and Amazon. Books are easier to get than ever, but there are fewer face-to-face socializing spaces involving books. What initially seems like it should enable bigger readership results in the lowest percentage of Americans who read for pleasure...EVER. And ask any author you might now about the business - no one is happy.
Game stores may be next, but only if we let it be defined by the pricing over the experience.
If we, or Spartan, or any other manufacturer limit ourselves to thinking small, then our gaming world can only get smaller. And that would be a Bad Thing.
Here endeth the rant... ;-)