I saw your comment on Facebook I think and to be honest, I would be more disappointed in your LHBS. $1600 for that kegerator set up is what, almost twice the price that even KK sell them for now? so essentially they want you to pay double for nothing!? The LHBS should be upset KK were happy to take such a massive margin on their products for so long when they had the monopoly.
Also, turning away a customer for a bottle fill is just dumb business, yeah they missed the sale on the bottle but they get the fills and maybe that customer buys other stuff from the store while they are in.. instead, the customer walks out the door, they get nothing and that potential customer never returns.
I am also very wary of any business running down their competitors, although the KK / KL beef has a bit of a back story
My LHBS sells KL stuff that I have seen, probably KK stuff as well, they also sell SS Brewtech, Grainfather etc. etc. I don't think it makes sense for a store to so vehemently align themselves with one supplier and I don't think it makes sense for us as consumers to either.