Not a great deal of sympathy but some. Dealerships do offer competition and choice to the customer - the kind of competition lacking if the manufacture sets the price and there are no negotiations over that price.
The problem for car dealers are they are one of the the slimiest and contemptible professions around. Buying a car is an ordeal thanks to the upselling, misleading prices, nickel and diming, fine print and sales pressure that goes with it. Car salesmen are on a commission and quotas and they will fuck people over to get them. As such it's very hard to tell what sort of competition dealers provide for each other since they're all on a race to the bottom.
I think Tesla will have to sell cars via dealers but the best way to protect its image is to impose strict provisos that prevent dealers from tarnishing the brand and make the process of buying a car simple, free of pressure and scummy sales tactics. I'm sure Tesla has a few big sticks it could use to ensure compliance and the quality of sale and after market service.