I am one of those small businesses with a pitiful website, but it's enough for me. My business comes from people who walk in my store. I put my web address on most of my advertising but no one goes there, so why should I spend money on it? I'm content to let it sit there and collect dust.
I don't ship products -- all my business is local. When I list my website address and phone number in a website, the customer calls. It's easy enough to count how many hits I get on the website and how many phone calls I get, and about 90% call me. I think my customers appreciate someone who will take their call -- there is no phone menu, just someone who picks up the phone and says 'K&G Pets, may I help you?" And we usually have the answer right there - no searching required. You just can't get that kind of personal attention on a website. If I found that more people would actually visit I would do something about the site, but they don't.
The fact is it's difficult to use SEO to develop local traffic, and I think my time and money are better spent putting together nice store displays, developing good ad copy and talking to my customers than trying to get them to visit my website.