Competition is about having options.

Of course there's many choices if you're buying an Intel CPU. But how many users here carry a wide range of Sennheiser headphones. In fact, in 2010 when I was building my current PC, I was looking for this huge double heatsink by Noctua and it was no where to be found. Also failed to get this supposedly one of the better thermal paste. A good fan controller is another rare product.

Another issue I notice is the attitude of the traders. I've came across some dispute here at the dispute section, and he showed an obvious "I've had many transaction so screw you and your opinion" attitude. Some traders here let their arrogance get the better of them. And he is a trader who sells a wide range of hardware, which is very few here. There's one that won't even reply my PM inquiring about the availability of a product.

Of course there are also good traders, like hikari85 whom I always check with first when I need some hardware, as this trader is one of those few who carries a wide range of hardware and have very good communication with the customers, quick to reply in all the times I've deal with. But very few traders are this good.
More option is always good. It doesn't matter if newegg brings the same price, of course the prices are controlled by Intel, nVidia, etc anyway. I just want to see more options I can rely on. And if newegg can bring in those harder to find products, all the more power to them.
I also know quite a few people who don't like the idea of buying online from users, understandably as you are banking in money to a stranger expecting to get your items after the fact. But with a real online retailer, they would have no problem and I would gladly introduce them to online purchasing and spare them from the rude service we're getting here at the local retail store.