This seems counter to my experience and memories. I'm old enough to remember the pre-VCR days so lived through the entire rise and fall of video rental. These stores were never a community gathering place or anywhere that you really met people. You'd go in, browse for a bit, pick a movie, pay and leave. This was the same at the locally owned shops and later when Blockbuster arrived and put all the local shops out of business.
I do think we've lost a lot of "civic life" in the past few decades but video rental stores aren't anything I remember fondly.
Yeah - the article does over-glorify. I did frequent one rental store where I could chat with the person behind the counter about movies, but none of the others.
Mine had a video game rental store next door (GameCrazy) where I met other gamers.