You keep saying that FFG could sell products in Walmart or Target. Not only is that concept laughable but it's missing the whole lot of the point of why FFG wants brick and mortar game stores to consistently carry thier product.
First, in regards to the idea that Walmart and Target would stock FFG's stuff. You're basing this on the fact that you bought an X-wing Core Set and 7 Wonders at a Target once? So because Target will stock a Core Set to FFGs most popular line and Asmodee's biggest board game, they'd stock full lines of FFGs product? You've got to be nuts, do you see how many SKUs X-wing has, or IA, or even Armada? How much space do you think a big box retailer is going to give to niche gaming products? They devote a 1 foot space on the bottom of a corner shelf to 4-5 X-wing Core Sets, they carry none of the expansions, and you'd think they start carrying the 2nd string Star Wars line in a real way? They don't even carry less niche gaming products like MTG and Pokémon in a real way. They get maybe some shelf space that rarely gets restocked near the registers next to baseball card and As Seen on TV products.
Walmart and Target are not real distribution channels for FFG products. They are promotional.
Secondly, even if a big box retailer were to stock FFG products in a real way, do you think Walmart is going to start holding open game nights and tournaments? Because that is pretty much the whole reason FFG wants to keep thier products in brick and mortar stores. FFG has made the determination that brick and mortar stores create and drive the market for thier products by running events and providing players with a space to meet and play the games in. Even if Target or Walmart were to stock more FFG product (which isn't going to happen in a real way) they won't be providing the space for those game to be played in a public venue. That's exactly the benefit FFG wants brick and mortar stores to continue to provide to thier products. FFG realizes that won't happen if stores are unable to sell FFG products because they can't even remotely match prices with online retailers, because up until FFG decided to change the terms those online retailers were getting the same rate as brick and mortar stores that provide a service FFG wants to maintain. Online retailers were just reaping the benefits of in equitable distribution model.
I think the main point he was trying to make is that many of the people who buy these games only do so when/if discounted. Raise the price, for ANY reason, and they will lose a large market. Many of us (apparently mostly those who buy online) feel that the 'discount market' is larger and likely more profitable to FFG than the 'FLGS market'. So compromising online prices to save brick and mortar stores will ultimately hurt FFG's total profit.