While I agree to some extent, the issue is that Sligo has two identities -- it's original customer base, and the scene that started to descend in the 90's. So, different people are addressing two different targets. I've only been to Sligo twice, and both times were in the 90's, although I've passed-by and looked inside countless times in my former years living in Davis. Even then, it felt of another time to me and I felt a bit out of place, even though I did come from a working-class family -- but I was neither the older traditional crowd at the time, nor the newer crowd emerging (who were my age, but seemed more interested in mocking than joining the traditional crowd).
In reality, Sligo is neither great/historic, nor shitty/over-glamorized, but I would say it is somewhat "important" to a shrinking community/dying generation. For some people in Davis who are Gen-X and younger, whether admitting to it or not, going to Sligo has been more of a gimmick for more affluent people treating working/lower-class culture as a prop -- much like every time I hear Lana Del Rey's version of Doin' Time. For both Sligo and Del Rey, it always makes me think that someone needs to force these people listen to the song "Common People" by Pulp, to make them realize that they are not nearly as clever or original as they think they are.
In any case, if Sligo were to close, these newer people would just end-up going to the many other place in Davis that caters to their demographic. But for the traditional customer base of Sligo, there isn't much else in Davis that caters to them anymore, so I would say there are some consequences for them, and there is reason to be sympathetic to them in that sense. I think amongst all the noise, the main sentiment is that, if Sligo were to go away, people would prefer it to be because not enough of its traditional customer base exists anymore to support it, rather than simply being kicked out (but again, we don't actually know Scape's plans yet).