I've been to the TCO in Reading, and would love to buy more things from them. Nice shop, nice guy, and I like to patronize places where I can.
The downside is that many smaller shops only carry a a line or two, so if they don't have what you want, you're out of luck. That's the biggest benefit of Cabela's, the offset is you're not supporting your local business and the guys at Cabela's are helpful, but the corporate bottom line doesn't care about my specific needs.
I won't lie that I might have tested at Cabela's with the intent to buy elsewhere. That place gets enough of my money as it is.
I will also say that sometimes a rod changes character on the water versus on the grass. I bought a Versitex rod from the LLFS after I tried it on the water and it came alive. It wasn't so hot on the grass, but when I walked the 20 feet to put it on the water, it was a whole other animal.
As to reels: I now have a collection of very expensive toys, and some cheap ones. A Medalist may not stop a freight train like my Abel, and it may not sound as sound as good as my Orvises, but it cost $25, and if you're on a budget its hard to beat that.
I'll put the big guy on for salt or steelhead (if I ever get there), but for anything I'll find 'round here, I bet that Medalist can do the same job. Its got a palming rim if I get over my head.
Although, as the paperwork that came with the Medalist said, there's not a fish alive that hasn't been caught on it, from spring creek trout to tarpon. It just doesn't look pretty.