You started out by claiming "they don't compete with Walmart" because "Walmart almost doubled Amazon's revenue last year". But since that's not true you've moved the goal post and now you're claiming "Walmart eating Amazon's lunch this decade" is the most likely scenario because Amazon has a counterfeit product problem and Walmart has political connections.
I don't think you understand just how insignificant the counterfeit issue is. Amazon reports it as 0.01% of sales, but even they're off by a factor of 100 that's just 1%. And 1% of their .com revenue is still less than 0.5% of their overall revenue because most of Amazon's profits come from AWS.
> Amazon solves brick and mortar
What is there to solve? Amazon has a logistics infrastructure that Walmart can't touch. If they decided to open a big box store do you really thing the counterfeit issues in their affiliate program would harm them? It's not like they'd put affiliate merchandise on the floor. I feel like they could figure out how to unload trucks to retail shelves and do in person payment processing at least as well as Walmart.
> Walmart solves online sales.
Walmart has been competing with Amazon in online sales for a decade, how's that going? Walmart has nothing to compete with Amazon's Audible, Echo, Ring, Blink, or Prime offerings. Sure they have free shipping with Walmart+ and an affiliate program but is that enough? They've tried countless times to compete against Amazon and failed, most recently they sold Vudo off. At the same time Amazon has launched countless brands and new products with great success.
Amazon.com's tone deaf Billionaire founder and their treatment of their workers are a far greater risk to them than Walmart. But bad reputation and consumer dislike aren't going to kill Amazon anymore than they've done so with Walmart who has infamy for destroying both small town America and America's manufacturing infrastructure.
Honestly I'm not sure why you'd want either of these companies to succeed.