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The Amazon thing is kind of what I suspected - it is kind of the bane of game stores right now as its hard to compete with that deep of a price cut (and still pay your rent). I suppose its good that the pay for play thing is working for them, but based on what I've seen in my area it won't work...

Is it generating sales for the store?

What you describe sounds pretty typical of what I see in my town. Tabletop gaming is pretty much supported by board and card games - which is not really a bad thing, but becomes a disheartening if your primary interest is RPGs. When I last visited one of our local shops (two weeks ago) and...

Most recently, a pulp science-fiction game (space travel in 1936, with lots of Nazis). Game went on hiatus a few months ago, hope to restart it soon.

There was a small amount of revision to create a (very minimal) overall storyline, and minimize the feel of them being tournament adventures (which they all originally were).