We're still at the stage of LEDs imitating existing lighting design, rather than having their own sui generis aesthetic. You get LED bulbs that fit existing fixtures, with the heat-sensitive short-lived driver electronics packed up against the hot LEDs, and a very different light pattern to the bulb they're replacing.
I've been impressed with the availability of cheap "warm white" LEDs, and I'm on the point of trying to design my own lighting fixtures out of aluminium.
The business owner just cares about letting people know whether or not the store is open. He's not out to give the customer a transcendent esthetic experience.
"It works" and "it doesn't cost much money" are really the only criteria here. The neon signs were free/cheap because they generally also served as brand advertising. The LED signs are just plain cheap. Both serve their necessary function.
Is that really true though? Neon can be beautiful, e.g. see Dan Flavin. LEDs can be beautiful too, e.g. Leo Villareal. It's not about the medium, it's about the execution.
Maybe it's not a big deal in the scheme of things, but cities are hostile enough as is. It's the little things that can add up to making a place pleasant to live and work in or not...
I think it's like the plumage of the male peacock. It doesn't make sense at all to put on that display, but if everyone does it you can't be the only one out, because it's expected.
Here in old-timey Europe I know only one shop that has an open sign like that, and it's a massage parlor.
:)
Just kidding, I was just too disappointed not to be able to see anything.