Founders

I completely disagree with this argument. 

"When I buy from my local bookshop, I help a local vendor stay in business."

This is just prolonging their misery. 

If I was the businessman running the local shop, I would not want those "pity buys."

Instead I'd like to;

1. Provide strong value so that people like coming to my physical shop.

2. Ask my customers how I can help them further.

If I don't provide value, I deserve to go out of business.

If not today, in a few years, I'd go out of business anyways.

I'd rather that be today instead of a few years of unhealthy and fake relationship with my business.

If you were the business owner, would you want a "pity buy" or an "honest feedback".

There’s a challenge here. 

A lot of local stores provide community, convenience and experience — however we are still not happy paying for those things so we do by supporting with purchase.

Super true for indie bookstores

Of course. If they provide community, and if folks want the community, that's a great value add.

If folks don't want the community, in that case, buying online is more preferable.