Ha yeah, I'm sure I could rebuild the fork no problem - I've got all the tools and have been working on cars (and my other bikes) for years - but no way I'm ever building a wheel!My LBS has gone evil also. They want much more money for simple things that they used to do for a much more reasonable price. So I swore to never get any service from them again & bought my own tools and learned how to do everything myself & did actually do everything on my bike myself. The only things I have not done done yet is rebuild a hub, lace a wheel to a hub, & rebuild a fork. Other than that I have done everything else. Soon I will rebuild my hub also. I just don't think I ever want to deal with lacing my own wheels that might take time & to be very careful. The fork maintenance I can easily see myself visiting in the future.
If I were in your situation, I would most defenitely take apart the fork & try to service it myself. Based on what my results would be after I tried I would only then consider another option like getting another fork because I would rather spend the money and a new fork a small amount of more money than rebuild the old one if I couldn't do the service my self. Although I did just buy myself a fox float 32 fork, but that's because I really wanted it lol.
I'm happy for the LBS' business, and also at the expansion of the bike market, but the entire convenience of having a shop nearby is kind of gone now.