It sounds like states differ quite a bit. I'm not sure what it looks like elsewhere, but in CT, my two local package stores have only 20% of their fridge space dedicated to BMC. For example, out of the 8 doors on one cooler, the first 3 (closest to the entrance) are all craft, some pretty local and obscure, the 4th is 1/2 mike's lemonade type stuff and the craft version of the same. Doors 5 and 6 are like the DMZ, killians, guinness, etc. the 7th is half the faux craft and half stuff like rolling rock and pabst.....the 8th door, all the way at the back of the store) is your BMC typical stuff. They get very little shelf space and it's definitely not clearly visible. Most of our package stores have a similar distribution of cooler space, and the craft gets a row or two of room temp bottles as well.
My point about the faux stealing shelf space, is that while in the short term, fooling customers into trying "craft" with the faux stuff does steal from the little guy, they will inevitably brach out further into the real craft. Once the second shift occurs, customer demand or buying habits would re-bias distribution of space towards true craft beer.