Funny that you take up on agreement with my post, because I thought I was rebutting you.I don't think any of the evidence out there indicates what you are saying at all.
GameCrazy closed because they were run by marginally-functional retards and had the dead weight of a parent company video store that killed any good they could have managed to scrape together on their own.
Play-n-Trade is/was a total crap shoot. The only good one that I knew of was run out by their neighbor businesses buying their lease out from under them, forcing them out. That is why you never allow your business to become the local teenage human garbage hangout spot... I loved the store itself, but some of the kids that seemed to nearly be permanent fixtures were beyond obnoxious, loud as hell and half of them could be considered scene kid rejects that try to hard to be liked or hated, never settling for anything between.
The new indy store that I have been going to for about half a year now has a great selection and the prices range from a bit less than going to a smidge more. Rare is it you find something super stupid cheap or laughably expensive. Plus, the best thing going for this one is the owner. He is simply an awesome guy. I'm working to try to get a local gamer meet established with his store as the gathering beacon (yes, something somewhat like NAVA). He tells me that he was surprised by the reception his store has had as he was certain the first year or two would be a tooth and nail fight against red ink and overhead. I took that as his venture was doing much better than planned, if not outright well.
It takes something of a miracle to keep a poor enterprise going for long, but one disastrous thing can take down an otherwise healthy one... A store with fair pricing and good selection does have a lot going for it rather than against it though. Those are merely the fundamentals. Many other things can go to pot, and many of those are outside of operators direct control in some cases too.