1) Convenience is subjective. I find it convenient to be able to walk into a store and have my product in hand day 1, along with being able to browse an entire store without the "blinders" that a search engine necessarily imparts upon the shopper. Shopping online, I have to be fairly specific about what I'm looking for, and the results may contain wildly extraneous results. If I go into my FLGS and ask for RPGs, I'll be sent to RPGs. I just tried that at Amazon, and was directed to computer games first.
2) Price is but one way in which retailers compete in the market, and depth of product choices can be an advantage or disadvantage depending upon the exact details. You can have any product in the world to sell me, but if I can't find it for whatever reason, I'll look elsewhere.
I buy from places I like & trust; from retailers who are not cross-subsidizing products; from stores with well-informed & helpful employees. And I'm happy to pay extra for that. And just so we're perfectly clear on that, that does NOT mean I don't buy things online.
Is it a losing battle? Only time will tell.