And in the end, car dealerships do deserve to undergo a radical change in their structure. They are inherently bad for customers.
For one - they make money in ways that customers are not aware of. The most insidious being "point spread". You walk in, buy a car, and they make money selling the car (fair), future service either under warranty or direct to the consumer (fair), and more importantly, on the financing. You might qualify for a certain rate, but they get a big chunk of the difference between your best qualifying rate and what they convince you to pay. So you qualify for a 3.5% rate, but they get you sign on the line for 9.9%, and they get roughly 50% of the point spread between 3.5% and 9.9%, which on many financing arrangements, is far more than the profit involved in selling the car to begin with.
Second, they do an only okay job with service. They do not typically do as a good job as independent shops, and for warranty work, face little competitive price pressure.
Finally, they are effective local monopolies and do not always respond to market pressure. Because of brand monopolies, there is not as much competition as they would have you believe. The car market is deeply segmented, and so there are not as many brand choices in a price/demographic band as you might think. On paper there are 15 manufacturers selling through dealerships in a market. But for a single random consumer, there are likely 3 or 4 options that meet the basic criteria of type and price range.
In many small towns or areas, the local car dealer is the wealthiest person in town. There is a lot of profit standing between the car maker and the consumer. And in the end, this excess is needs to be wrung out of the system. Manufacturer's should not be able to prevent car dealers from selling and servicing cars, but long-term, the concept of a franchised car dealership needs to be scaled back. Channel conflict is inevitable.