As a small business owner, I can tell you that the reason a lot of small business take it in the pants from the big guys is because small shops sell a fungible product and provide little in the way of reasonable customer service.
In other words, the strings I buy from Corner Guitar Store are exactly the same set as the ones I can get
Musicians Friend et al. Except the the online retailers don't have the overhead of a retail location and they undercut the small shops on price. If the small shops don't provide me with additional value to justify the increased cost, I'll vote for lower cost every day.
Small shops have the unique opportunity to host unique products and provide highly tailored customer service, but usually they just sell fenders in black white and blue, and gibsons in red and someburst and either ignore customers or give them the hard sell. If they reached out to small builders and put their dollars there they might find a unique place in the market.
I don't see any value to the idea of "supporting" a business. You support your kids, your pets, your hobbies and your sports teams. Business should expect to be patronized for the value they provide their customers. If the business (or band) needs "support", it's because the model can't survive on its own.
Then again, consumers, particularly musicians, are really dumb. The whole market is predicated on the fact that Slash plays a Les Paul, and Jimi Hendrix played strats. Kids want to sound like their heroes and thus want to play that guitar, or bass or whatever.
In a just world, everyone would play PRS guitars as their backup and have a custom built small boutique instrument as their main.
I personally don't see much future for the small instrument shop. I can't tell you the number of times I've excitedly gone into a new to me guitar store and left disappointed after seeing the same thing that everyone else has in their store.
Then again, the local Guitar Center (and by local I mean their San Francisco flagship store) doesn't sell anything close to a high level or elite bass. I think the highest they go is a Music Man Stingray (which is a nice bass, don't get me wrong, but it ain't no Ritter). So, there is an opportunity.
I currently have three black basses, two sunbursts, and one natural. I've been part of the problem, and I'm sorry.
However, one of the reasons I started getting into bass building was to develop finishes and body ideas beyond what is available commercially. Over 2014 I expect to build basses featuring a variety of colors and designs that are just bonkers.