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As with most things in life, I think this one too is about perspective.
Sure, physical shops are becoming scarce and slowly replaced with digital alternatives due to the reasons already mentioned, they are cheaper, easily accessible and probably more environmental friendly.
Yet, I don't think they would die out completely. They still fulfill a purpose and offer a service for which there is still a market, as people like you (and me too to a certain extent) would still find pleasure in frequenting an actual, physical place to skim through the records and talk to people. It has become a luxury in modern times, not a necessity due to lack of alternatives. It all comes down to demand and supply in the end.
Same with the internet of the early days. The spirit isn't gone, pages like this one here are proof of a still existing demand for simple, reponsive java script free environments for anonymous discussion.Yet, it has also become accessible to those who are less tech-savvy, a finger tip away. I don't mind places like Discord, Instagram and alike being around, I just don't like to participate in those environments and would rather choose an imageboard, a Matrix server etc.
We haven't lost anything but live in wonderful times in which the internet and everything else is becoming richer, more diverse and colorful and there's a niche for each everyone.