The economy is transitioning as it always has and always will in a free market to become more efficient through technology, or the internet as you infer.
200 years ago cargo was distributed by horse/ox drawn wagons. (Oxen were like the diesel engines compared to the sports wagons pulled by horses, I guess.) Was the economy hurt when product went to being distributed by rail? It may have hurt the wagon shippers, but the economy and workers were better off in the long run.
We also have a temporary over supply of homes. The population, I believe, grows at 2%. As soon as the supply and demand get back into balance (it got of balance thanks to the government) they'll need bricks and mortar once again for homes and also distribution warehouses, etc vs the mom and pop store. But them again an oversupply of homes is good for the purchaser. The corporations (from home builders to banks) are losing money hand over fist in residential and commercial construction and the whole food chain associated with it), but is there any press highlighting what great deals consumers can get at corporate expense? Nah, it's all about how bad the corporations are. Government and those who signed the subprime loans they couldn't afford take no blame. But I digress.
Unions looking out for their own interest wanting to preserve and protect their wagon drawn ways is not good for the economy or the future of workers.
While the macro view is correct, the downside is most average people (but who cares about them) can only operate in the realm of where they are now, and cannot operate on generational terms of wealth accumulation, which leave the masses to be whip sawed throughout their lives only to be gleaned of their perceived wealth until the next thrashing. Praise the Lard.
For the low low price of $300 million you can buy Blockbuster and all of its brick and mortar locations. The commercial real estate is probably the most valuable thing included in that package. My plan is turn Blockbuster into Blockbuster M.D. Where Blockbuster becomes a chain of doctors offices where all the doctors are imported from India and Central America and given the wages and polo shirts of blockbuster employees. And you can rent DVD's at the doctors office for an extra revenue stream.