Here in Pasadena, there survive independent bricks and mortar book (Vroman's) and music (Canterbury's) stores. It is great to have them around, because browsing is fun. I spend more than I have to for books and cds because I want them to stick around (sort of like public radio, I guess).
Nevertheless, I have a Kindle, and I buy stuff from Amazon too, because of (1) convenience and (2) inventory. Vroman's is great, but it can't stock everything. When I want to read something, given the choice between waiting for a special order or waiting for some electrons to arrive, I will take the electrons. When I travel, I find that electrons are lot lighter than books too.
Hence it is not price that drives my purchasing decisions, but I am enough of an economist to know that prices drive the decisions of most others. If that price gap between Amazon and Vroman's grows even larger, I am not sure how Vroman's survives. Pasadena without Vroman's is not quite as nice a place as Pasadena with Vroman's.