A friend of mine worked there and got a bunch of stock options as part of his compensation/ salary. (He was just a lowly salesclerk or something, but they were handing that stuff out like candy.) His dad, an economist, told him to hold on to them. He needed money and sold them for mucho moolah -- about 3 months before eToys went belly up.
Meanwhile, I do both. For example, eoe mentions Pottery Barn -- they have decent sales online but I've been cycling through the two in town to pick up absolutely amazing deals on frames in their stores. (They always have great deals this time of year, I guess they have a lot of stock over Christmas and then this is the tail end of it.) Just got a beautiful shadowbox thingie that was originally over $40 for $5.97. That only happens in stores.
But then my husband was looking for some Doc Martens (he wanted some work boots and his old ones have finally completely fallen apart) and wasn't finding anything on sale online -- I said "let me at it" and found some on eBay for less than half the price of what he had found. (My trick -- they were listed as "women's" when I know this style is actually unisex, and they were in his size.) He's got them, they're brand-new and gorgeous, they fit.