I live in a midwestern city of 50k. The only alternative we have is Hobby Lobby. I can't say I loved the selection available at Joann's, but at least we had something.
Unfortunately not all of us live in dense urban centers that can support boutique craft stores.
My husband crochets, and the problem with most of the local yarn stores is that a lot of them cater to more "boutique" yarn. It's hard to find cheap, standard yarn in a variety of colors for him.