Keep my local channels.

And will you switch again when the same thing happens to DISH, and then again with the next TV provider?

All TV providers go through negotiations. Only the channel owner may pull the feed as they own the broadcast rights. So when agreement deadline comes up, it is the channel owner's choice to pull feed or leave it on in good faith while still negotiating.

Remember local channel increases costs to TV provider which results in adding that to our higher bills as customers. I say use a regular antenna to get the free broadcast instead of giving in to the local channel's threats. Switching TV providers will not save you as they all go through this as they don't own the channel.

Keep my local NBC affiliate WTHR, Indianapolis, IN.  If not we will be switching to DISH. 

The owner of your local station is the one that will deny AT&T the right to carry the channel.  I suggest that you also tell them that you're unhappy about the situation, as they are the one in the best position to rectify it quickly.