I'm always sad to see the loss of more book stores.
I concur that digital content is a great deal of the loss. Where previously people would buy a paperback and then take it to their used bookstore when they finished it and get something different now those people are buying e-books (or just downloading pirated copies).
I used to purchase 6-8 books per month at B&N. Now I'll pick up 2 if I'm lucky and many times won't pick up any at all. Between the fact that there are fewer books being published in a format I'm willing to purchase (barring maybe 3 authors I only purchase mass-market paperback) and that B&N started pushing their Nook in stores so hard I find myself going there almost as often for coffee than I do for books.
End of an era.