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I always thought of smaller book stores as a labor of love. They were never that financially sound. I wouldn't take much to drive them to extinction. Larger stores like Borders or B&N will just take longer to recognize their death (and some are more actively transitioning to e-books).
We've had lively debate here over the timing of the e-book revolution. They can't take over until e-readers trickel down to much lower economic levels, and perhaps become physically more robust as well. Most of us agree that's not in the 3-5 year time (we've got some optimists) so bookstores may have anywhere from a decade to a score of years or more of potential survival.
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