What's killing our sector of the hobby is the thrill factor isn't there for the Nintendo generation. Look at the NATS attendance numbers RC combat, helicopters, and pylon racing.
I had a similar hobby shop response a few years ago, when the no longer there clerk said, "Control line, nobody does that any more!" I still go there, but as said, he ain't there no mo!
To get balsa lately I've been going to Michaels craft shop. Better than nothing and sometimes they have good stuff. They definitely have a good stock of basswood. If someone is particular about weight on-line is the only way to go.