Amazon has been doing this in parts of Germany since 2009. The results haven't been nearly as dramatic as the article predicts. As others have indicated, the limiting factor isn't so much speed of delivery as the inclination to physically inspect items before buying them. That said, Zappos, now a part of Amazon, has succeeded in doing that in one of the markets that tends the most towards such. Even so, there are sti…
I think, non-dramatic european response may, in-part, be due to comparatively sparse product options on Amazon's european stores compared to its US .com offerings. I have used Amazon.fr while in Paris and have been disappointed by the limited offerings. Price is an issue, too: on Amazon.fr: when shopping for a TV, for instance, the prices were cheaper at Parisian retail stores.
I can't complain about selection, though. Particularly if you live in an area without boutique stores, Amazon US is likely to have every product you can buy locally.