Music retailers vie for dominance while their segment slowly dies

It's not really big news, per se, but it's darn interesting to read that the owners of Coconuts Music and Movies, Strawberries Music, Wherehouse, CD World, Spec's, Second Spin and Planet Music have proffered an offer to buy the now-bankrupt Musicland Holdings, owners of the audio and video retail chains Sam Goody, Suncoast Motion Picture Co., and MediaPlay.com. Seems to me that these people haven't noticed the writing on the wall, that the combination of the iTunes Music Store, Walmart, Amazon and other 21st century media distributors have doomed traditional media retailers to the dustheap of obsolescence:

  Wherehouse buys Musicland: why bother?

To me, it's like dinosaurs wrestling in a tar pit or passengers fighting over deck chairs on a sinking ship. What do you think? When was the last time you walked into a traditional media retailer and purchased a CD or DVD?