I have been with blockbuster for ages and never had a problem, apart from 1 going missing in post, so if i where one of thr disgruntled lovefilm customers i would just jump ship to blockbuster.
As for the comment about staying loyal to a video shop, i find that quite funny. Whay would i want to do that? Its more expensive and alot more hassle to do and has utterly no benefits whatsovever.
The online service is quick hassle free and cheap, something which the stores dont have atall. If a business saves me money them i use it, i dont not use it because im trying to stay loyal to someone it makes utterly no sense. I work hard for my money and i will use my cash to its best effect and the best way for renting films in doing it online, not driving 4 miles to the town centre and paying 3 quid a pop for a film that i then have to watch within 1 or 2 nights only to have to drive all the way back again to drop it off, wasting petrol.