I always feel its a great loss when another major music retailer goes under, but then realize that this sentimentality is not congruent with my behavior. I haven't bought a new full priced retail album from a bricks & mortar store since I can remember. And even the last time I was in a used record store, I thought to myself, this manual browsing around in the racks is not as fun as I remember. Its much more productive and convenient to be sampling clips and downloading stuff from an itunes, amazon, etc. If they would just offer FLAC or ALAC files, I would be completely happy (I know - HD Tracks : but too pricey for me).
So yeah, as much sentimentally as I like the idea of the corner music shop, the reality is that I like most have moved on, and as much as I hate to admit it, in all honesty prefer to shop for music online. About the only exception is a used record stores to have an avenue to sell unwanted records or to buy the occasional discount music. But even here, buying used music online still often is better (better selection, more convenient, lower cost).
Lastly, I regret the job losses, but as someone whose first job was at a record store (Tape World - ha ha), I can tell you that working at a corporate record store was not that cool. Even working at my next job - a mom & pop camera store - was better (better $, better boss, better working conditions). So hopefully those folks can find better jobs, even in the retail sector, even with the state of the economy being what it is.
I guess in sum what I'm saying is that it's too easy to be nostalgic about these things. The world changes, and if we stop to think about it, in some ways for the better.