The question should be is if the games retail industry dies and all the publishers sell directly to customers... is that bad capitalism? By that, I mean will it lead to less competition to keep quality high and prices low.
I think it will be good for the industry as a whole, cut out the middle man, allow the big publishing houses to more directly compete on the much freer market of the internet rather than the oppressive high-street.
I mean it's not like these retail stores offer ANYTHING to us other than the games which they don't even make, they are useless for advice, you can't try-before-you-buy, and they completely fail in offering prices even remotely competitive with the internet. The only place I've ever found a deal is in their bargain-bin of PC games which seems to be more for stock-clearance than anything else.
Every time I walk into a Games retail store it is the same thing, game after game 120% to 130% the price it is on the internet, trading in is a complete rip-off compared to selling online. Again and again I walk in and walk out without buying anything, often I only go into game stores to remind me of what games to order from amazon.