The same discussions occurred back in the 1960s or 1950s, I cannot recall which decade 
. Then it was between mom and pop shops and discounters (in NYC, EJ Korvettes, Two Guys, etc.). The discounters won the freedom to price things as they like. Mom and Pop shops continue to exist.
Personally, I find most of this discussion to be along the lines of change of any sort being equated with the sky falling. It's particularly difficult for us older folks to cope with a world that is so different from what we knew for most of our lives. By and large, economic and social change has been resoundingly positive, in my view, over the last four decades, and I see no obvious reason why that cannot continue.
In my own town there are fewer hobby shops but the ones that remain are the better ones, and the number and variety of small businesses, particularly restaurants, has increased impressively. If whatever you do, you do well, and you have a little bit of good fortune, things can work out.
