There is a place for both.
If you have requirements for special papers/board (even Conqueror), or Pantone colours, or unusual sizes (I have a client with odd sized business cards), or a specialist finish, or a host of other things that mark out a piece of print as being different - then you should have a range of local printers (probably have to cast your net a bit wider than 10 years ago) who will be able to help you with that. Generally you will find that one printer doesn't do all - I have one for Pantone printing, another for packaging, another for NCR books. Online printers are great for the type of print that everyone wants. It's how they make their money; by putting 8 different A5 leaflets together for one run... it's why the prices can be so low. Ask them to quote on something not on their product list and you will be getting the same kind of price as a 'traditional' printer.
It is probably the independent graphic designers who can help keep the 'traditional' printers in business by suggesting to their (wealthier) clients that they have a 2 or 3 colour pantone logo, or use a different type of paper, etc. If you don't use it you will lose it!