Well, I can't speak for L.A., nor anywhere in the USA for that matter (I'm up north), but sadly I believe you are right. Or if not, then you're darn close. Because that's what I think is happening too, in a sense.
It seems, at least for the young generation (30 yrs old and younger) have no interest in buying RECORDS and I use the term records to represent albums, whatever their form: CD, well, jeez, I guess that's it (okay there is a niche market for new LPs but we won't talk about that). They just want to hear the music, on their portable I-whatever and car mp3 player. That's fine, but I have no friends who like to just buy a freaking album (much less buy Vinyl like me) and play it, at your home, on your stereo (not f?%$ng "home theatre") while looking, if not even admiring, the album cover, booklet, or both. Well I had one friend who liked to do that. Anyway, it is not what it used to be before the internet.
So if I have to point fingers, I'll point it at THE INTERNET, or rather THE DOWNLOADABLE MUSIC INDUSTRY. I'm not shouting, I just want to emphasize, clearly what I mean. By the way I am sorry for going on so long. Thoughts seem longer when they are written rather than spoken.
I guess it's just going with what people demand: a quick way to get music, being able to sample what you want to buy (wasn't that always possible in a music store?) before you buy, and being able to bring with you the equivalent of 500 albums of music with you at all times in your pocket.
Only people with musical inclination, or technical interest (in that I include all GS members) give a hoot about all the stuff that went into the music, who composed it, who recorded it, etc. Who else can care that the Stones recorded their greatest hit, Satisfaction, in mono?(okay, mixed in mono) Maybe it's because I am just hooked on everything musical.
OK I'm cutting it there!