It's been my local for the past 20 years so I hope it manages to survive in some form. For half of that time it was all peeling paint, sticky carpets and fruit machines, with the back bar a festival of formica that was rarely opened to punters. No kitchen and hence no food, but they'd give you a fistful of takeaway menus and a plate and cutlery if you promised to stay and drink. It had a laughably crap quiz and occasionally someone lamely strumming a guitar, but not much more.
The two people who took it over in about 2010 gave it a light cleanup but continued to run it in the same convivial but shabby spirit as before. One of them then died very suddenly and his business partner struggled on for a bit before selling up. It's had three (at least) other owners since then, each of whom has invested more in the place, but with every refurb I've found myself liking it just that bit less and consequently going there less often. Now it has all the appearance of a smart gastropub but lacks the ability to offer the kind of experience that implies. The audience bandwidth has narrowed and it feels to me like a generally less comfortable place to be.
As you say, it's a small place in the backstreets, but it's in a very residential area with quite a large catchment if they play it right. I'm not even going the dignify the anti-LTN crowd argument with a response. It's simply not an issue for all the reasons you say.