Well, Borders in the UK went bankrupt a year ago, but I don't think bookshops are going to go away any time soon.
When I buy a book, either I want a specific book (in which case Amazon is the most convenient way of getting it) or I want a book on a particular subject, but I don't know which book I want. In a book store, I can easily and conveniently browse several books, and decide which I like the best -- this is harder online.
i kinda feel the opposite way, in the bookstore you base everything on the cover/thumbing through it...with Amazon you can actually read customer reviews and see if the book is worth it.
I really think Amazon is going to rule them all. I recently received a Barnes & Noble gift card and it wasn't until I tried to use it online that I realized how reliant I had become on Amazon simply having everything . B&N has a more limited selection, more stuff is "ships in 2 weeks" as opposed to Amazon's "ships in 24 hours" and their recommendations are useless.
As a brick&mortar store, I love B&N even though the closest one is half hour away (and do I ever miss browsing the 17th st one in NYC after work!!), but I'm never going to buy online from them again.
When I buy a book, either I want a specific book (in which case Amazon is the most convenient way of getting it) or I want a book on a particular subject, but I don't know which book I want. In a book store, I can easily and conveniently browse several books, and decide which I like the best -- this is harder online.