I try to buy as much as I can local (in all things) when I can.
Pros -
*Money stays in the area
*In general, I find that it is about the same when you throw in shipping
*Nice to have the store there for emergency situation, and if no one buys there, it will go away
*Grain IS cheaper for me local - shipping kills even the best grain prices ( I can get sacks for same or lower than NBrewer prices, plus no shipping) That savings helps cancel out anything else that might be somewhat higher.
*Our club does get a 10% discount too.
*The owner will take special orders for me and others - Just let him know a week or so in advance what kinds of bulk grain, or certain yeasts I want, and he will put them in as part of his order.
I also do buy some of my hops on line in bulk. But again, I am pretty sure if I asked, the owner would give me cheap bulk prices on a bunch of half pound or pound bags of hops if I told him in advance what I wanted.
If the service is good and the math is close, I would try to stay local. For 90% of my brewing time I have not had a LHBS. We do now, and it is really nice that it is there. I want to see it succeed.
Now, if there was a quality issue (old yeast), no desire to work with customer on getting things in you need, TERRIBLE prices, bad service, things like that - I would not hesitate to order on line.