"That said, i will still look after number one and if i find HN has an offer or service that is the best, i will shop there. Likewise if the offer/service is the worst (as learned via my own experience) then i will avoid it like a plague."
I think that is how the average shopper (consumer)behaves. We go where the cheapest prices are, online or not, provided the merchandise is of comparable quality.
Online shopping affects different sectors of the retail industry in different ways. There are certain consumable products that some may never want to buy online becuase they want to be able to see it, touch it, or smell it, or some may be happy to pay a little bit more for the convenience, yes, shopping at a store can be more convenient than buying online in some cases.
It all comes down to personal choice.
I think this furor will die down soon, and all concerned will learn from it and adapt accordingly, the latter part is the unsaid consequence.
Once again, just my random thoughts, not a thorughly thought out one :-)
