In the world of the internet, no matter how many rules or laws you pass, only one player will ever be able to compete on price. Even if you banned online sales altogether, someone could find the cheapest physical store (the only difference is that then it would be limited by location/distance, allowing a few more players...but thats as far as you can go).
If I want a specific product, I know what I want precisely, then of course the only thing that matters is how cheap and how fast i can get it, and there's always one objective number here. There's a small variation if you include customer service of course...but in this case as you mentionned, amazon has almost flawless customer service.
Anyone who wants to compete has to do so with value. Anyone who goes in a brick and mortar store either wants instant gratification (but that will go away as "same day shipping" becomes more common), or _doesn't know what they want._
The later is where brick and mortar stores have to compete to provide value. If the staff doesn't know what they're talking about and can't assist, you automatically are worse off than the cheapest retailer that can be found online and will die (Bestbuy!!!).
I used to work for an online retailer/manufacturer of marketing products that is top dog as far as price/quality goes. No one could compete in the US on price and delivery. But in certain markets, we couldn't get any kind of traction... why? The brick and mortar stores had very very knowledgeable/well trained people, and provided fantastic value to customers, so they never went online, as the savings weren't worth it.