I totally hear you guys about don't write off the shop. In one of the LYS's I don't frequent anymore, it WAS the owner being priggish. This latest thing just set me off about all of them.
My personal preference is to shop all over the place, including the internet. I think I'll be back in that shop, but I won't go out of my way like I used to. If an opportunity comes up to talk to the owner, who is quite fabulous BTW, I will. Or I'll have a chat with the person(s) I'm frustrated with. I don't expect the snob vibe to go away, though, and it is a real turn-off.
Every yarn shop needs a kid area. It should be part of their business plan. Okay, I'm a little insistent. But I guarantee that if my LYS had a train table, you wouldn't know my kid was in the place.