I didn't know LBS's can commission based. The one we had where we used to live wasn't, the two local ones aren't, and the one in Wilmington and the three in Raleigh we go to aren't (although two of the three in the Raleigh area are Preformance).

It also sounds to me like the 2nd salesperson was the better sales person.

I'm 5'0 as well (shorter inseam) and would ride a 44cm Specialized.