While I agree with all of the above, I can also see the other side a bit too.
I imagine petsmart is a pretty big target for nutjob animal rights groups. They probably live in constant fear of bad publicity/legal problems. You can win in court and it is still loose a lot of money fighting the legal fight and still loose in the public opinion arena. Most people are only going to see lack of water if there is no water bowl. Some locations require a constant supply of water to animals in shops by law.
That said, I really dislike petsmart. The mom and pop shops that used to be near us were really interesting places to shop, with lots of unique and interesting species. Now there is only petsmart and petco.
At petsmart the animal selection is really boring. And because they have to be set up like a walmart or something, their ability to innovate on in-store species specific housing and displays is pitiful.
I think that is their biggest problem as far as reptiles go. They can only have a few species, and their display is standardized, which means chams are stuck in the same retarded design terraria as frogs or tortoises or snakes or skinks or anoles.