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I think there's one potential benefit to the agency model that a lot of people have missed. The retailers/distributors will no longer be the publisher's customers. They will strictly be acting as a commissioned sales agent. The reader will become the actual customer. In theory, at least, it should make the publishers more responsive to direct market feedback. Sure, it would take some kind of sudden awakening in the publishing world, but financial statements have a way of sparking those.
Another factor is that the agency model actually plays to Amazon's strengths, which may be one reason we haven't seen any official corporate communication from Amazon decrying it. When price is not a factor, what's left with which to compete? The answer is service. Things like Walmart-style one-stop shopping, ease of use, and quality of customer service become more important factors. No one's likely to top Amazon in those areas any time soon.
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