It probably didn't help Blockbuster either that they opened entirely too many stores back when business was good. People tend to not take that into consideration. They built more than was necessary and never imagined for a moment that things could potentially take a sharp left turn for the worst.
I like Netflix, but I'm not against going to an actual video store. I still do that about as often as I did before I got Netflix. I had often relied on either purchasing movies or waiting for them to come on satellite. The video store was a last resort (although there was a store in Richmond, VA called Fan Video that I would often go to just because they were a truly badass video store), and the number of times I go there in a given year are about the same as they were before I got Netflix a few years back.
I do wish I could take advantage of streaming more often, but I'm stuck on a shitty satellite connection, and Netflix Instant Watch would eat up my bandwidth limit in just a couple of movies.