Amazon has definitely hurt the traditional bookstore, because people can order any book they like online and, if Prime members, have it delivered within a couple of days. They also under-price books, so that brick and mortar stores can't compete (they have more overhead). That being said, technology has also changed the way we read books (such as using e-readers and tablets), and less people are reading, so Amazon isn't completely to blame.
I do not believe Amazon is destroying bookstores. Bookstores do have a strong competitor, making it necessary for them to offer good prices and excellent customer service. Bookstores that have not been able to maintain a high standard have been closing down. Amazon is simply a competitor that many people have come to favor.