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Eh. I live in a town of about 10,000 and we have at least six bookstores. Many of them are "bookstores and" - coffeshop, restaurant, B&B - but what we *don't* have is a big chain retail bookstore.
Which is probably why we have so many bookstores.
Hey, I've spent plenty of time in Borders when I lived in the big city, but as the chain stores start dying, and since I live somewhere where the nearest one is over an hour away, I have to say I'm not going to be sad to see the big chains die. They killed bookstores, really. It's just karma.
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