I think bookstores are dead except for specialty shops. But we no longer have blacksmiths, firemen on locomotives, etc. either.
I see two modes of potential survival for brick & mortar stores. One is to display the colorful coffee-table display books that just will never work on an eReader for obvious reasons.
The other is what makes a precious few big-city corner bookstores an attraction...an owner who loves books and encourages readers with book reading groups, recommendations off the pop-lists, and willingness to sustain and encourage a faithful clientele who will buy books to support the owner.
Sadly, I live in rural America, and there are no such books stores within half a tank of fuel, so I buy online. I really can't afford $30 worth of fuel and a couple of hours driving every time I want to drop in a bookstore to browse for a $15 paperback.