Well I'm not sure petsmart is an LFS. They are more of an FS because they are such a large chain.
I would only recommend them if you know what your doing. They have some knowledgeble workers there, but you'll get the best advice from an LFS.
What I like about Petsmart is the price challenges and their 14 day fish garuntee. They used to do price challenges from any web site, but now they do it just from their own web site. I bought a Rena XP1 from them for 61.99. It was marked 109.99 on the shelf. So their challenge was pretty close to half off.
The 14 day fish garuntee is great if your just cycling a tank for the first time. I've never had them refuse to give me a new fish even when the water was full of ammonia.
Some of them have a small selection of live plants which isn't bad. I liked the swords that I bought from them once.
The bad is that they don't always have the best selection. Pretty much the same old stuff all the time. They rarely have full grown cichlids or larger fish too. The cichlids they usually have are young (which can be good if thats what your looking for).
And ofcourse there are plenty of people who say support the real LFS's just because they are local which isn't bad either. They are more likely to special order for you.