You know, the economic principles governing my hometown (not Indianapolis proper...an outlying city) are very, very screwed up. However, when the first Starbucks went up, all the charming independent coffee joints disappeared into the ether. This was particularly upsetting for me because the former coffee 'it' place, Bixby's, had just opened a mini-branch in the lobby of the public library. Alas, I think I had about 5 lattes there before Starbucks offed them.
Starbucks was the kiss of death for other places in my hometown, but it might just be situational. The semi-rural Midwest, and my area in particular, have been undergoing this 'chain' mentality. If it isn't something nationally recognizable, you don't get any patronage here.