But none of what you're describing actually happened. The big chains didn't kill local bookstores at all -- mom-and-pop bookstores are still ubiquitous -- and many of them are actually doing better than they used to due to the ability to list their inventory on Amazon, AbeBooks, etc.

And B&N itself is doing just fine, and is opening new locations. Borders is the only major chain that failed to adapt. Other large book retailers are also still going strong, e.g. Books-A-Million.