By going that route, if you saw one gun overpriced at your local shop you would have to quit buying there. Just because there are some bad deals doesn't mean you should avoid the good ones.
Sure, but it seems to me the Internet is a breeding ground for much of the hysteria and retail is effected by it - all out of proportion to what is really going on. Also since people literally all over the country can purchase you're going to have buyers from wealthier areas skewing the prices.Even at the more expensive LGS in my area I have yet to see a $900.00 Ruger GP 100. Also here in my area there might only be a small percentage of gun buyers who are interested in older .38 Special revolvers (my favorites) so the prices reflect the local market. On the Internet suddenly I'm competing with thousands of other gun buyers who are interested in the same thing. Hard to compete.
Also I still like to be able to hold the gun in question and check it out before buying it. I know that many of the sellers will have arrangements so that you can ship the gun back within a certain time period if you're not satisfied and so on, but I would rather just be able to say nope and put it down instead of having to go through all the hassle.
Do I buy off the Internet? Sure, but a gun is very different from DVD's, downloads and books. I guess I'm just a dinosaur in that respect.