This is interesting analysis. I don't know that I completely agree with it. Barnes & Noble stores are already heavily oriented towards children's books, cookbooks, art and gift books, blank books and random other stuff, along with a coffee shop -- none of which is replaced by the kindle. They've never had great genre fiction selection, an area which I suspect the kindle is really moving product, particularly given Harlequin's we-don't-care-what-e-book-you-are-we-want-you-to-move-our-stuff strategy.
Barnes & Noble could do a coffee shop strategy (turn the whole thing into a new casual dining chain? Yeah, that's a brilliant idea. Not), but I see them continuing to head down the gift shop lane and doing just fine with it. Hallmark shops should probably worry, tho.