I like lots of choice so I don't relish your 'pared down' thing OP. But I also like the choice of buying things loose, that you often can't do in supermarkets.
I'm lucky to have a small market within two minutes' walk and that cuts waste. I have a bag or two and they give me stuff. Often I'll say I'll tip it in my own bag without even their own wrapping - obviously that doesn't go for meat or fish.
It's not particularly cheap but it's not wildly expensive either. The choice is great - meat, fish and vegetables - but that's only because enough people here spend enough money to make it worth the traders' while. I guess the pitches are expensive. Not Borough Market rates, but quite high.
I get all my vegetables there and all my fish except for canned tuna or smoked mackerel. I buy special meat - not the same as The League of Gentlemen's special stuff
- just cuts like T-bone, rib eye steaks, Barnsley chops, lamb cutlets, fresh rabbits. All their meat is superior to Sainsbury's but the price is really high. I don't blame the butcher but I want to be careful.
His lamb cutlets are things of wonder btw. They are cut from the bodies of enchanted creatures. But they are so expensive and so tiny that I can only justify them a few times.
There's just one individual Italian deli now - there used to be three - and a dedicated cheese shop where you can ask for the exact bit to be cut and buy it with minimal packaging. They aren't cheap though. But it works out relatively cheaper and less wasteful to do what I did yesterday and buy three slices of bresaola and two slices each of whichever three salamis he chose.
I combined it for lunch with some leftover salad leaves, pickles and mashed Italian-style sausages that I found reduced from £2.80 for six to 50p. Fifty pence for six premium sausages??? I only used one and mashed it up with some cheese on some bake-your-own ciabatta from Iceland.
Sorry if I'm coming over as a food ponce, OP 
What I think I'm trying to say that it's not that easy to shop around in terms of price, time, access or food or packaging waste. 
I also agree with the poster who said that supermarkets sometimes need packaging to reduce waste and pickiness. People are horribly wasteful and trashy.