It sure is a conundrum.
I know that if Joe's sold tyres at cost they'd still be more expensive than you guys got in your bulk buy. Not by much but they simply can't compete - at the moment. The risk lies down the track. The Government will start taxing internet purchases, so the saving will soon be a lot less. By that time, local distributors will have had volumes cut so much they'll start charging more and more to fit tyres they didn't sell. Joe's fits tyres you buy from him for free at the moment, including balancing, and he does it while you wait, ride in, ride out in 30 mins. Bring one in and he charges $30-$50. That can only increase over time. Soon enough your cheap o/s tyres will have tax added and a big fitting fee, you'll need to book in and maybe even leave the bike for the day. Is that what we really want? Just sayin.
As for dealers, aren't they a necessary evil? Whenever one closes a lot of guys are unhappy. Instead of traveling 10 minutes to an overcharging prick down the road, they have to travel for hours to some other overcharging prick.
In the end we get what we ask for I guess.