I have to say my experience has been good. My LYS is only about 20-25 minutes away, but frankly, I rarely have time or money to go there.
The first time I went was right after I started knitting, and I took my then-9yod with me (she's the one who got me started knitting). The lady came over to me, introduced herself, got my name, asked about my dd, wanted to know what we were interested in (just browsing, don't know enough yet to be particular). She then explained how the shop was laid out, took us to her book selection, and picked out 3-4 that would be appropriate for my dd, and a couple that I might enjoy, showed where the individual patterns were, and a few other things, and then left us to explore.
We walked all around the shop, and touched pretty much everything (which I wasn't sure was okay. :-D). I finally chose a couple of skeins of a lovely alpaca that I really couldn't afford, but loved anyway. At the checkout, she remembered my name! I also said, "I hope you don't mind, but we just had to touch everything!" and she said, "Of course!! That's what it's all about!"
I've since been in for a class--at registration, she helped me choose yarn and gave me all the options and the pros and cons, etc. She wasn't even put off that I chose the cheapest of what she showed me!
It's so sad that business owners have so little understanding of customer service and what it means to the growth (or lack thereof!) of their businesses!
I hope all can find a nice shop one day!