Well, I know that I work at GameStop, so that makes me a little biased, but I think you guys are looking at this the wrong way.
I mean think about it this way: Do you like quirky/rare games and/or rpgs that aren't made by Square Enix?
Then this is good, because let's face it, game-specific retail stores like EB and GameStop (and our very own Game Addiction

) are the best place to get those. You're not going to find Shin Megami Tensei: Nocturne, Katamari Damacy, or Disgaea at Wal-Mart (and probably not Target either).
Wal-Mart especially caters to the mainstream. The video game buyers order boatloads of anything made by EA, Rockstar, and Sony, and any movie-based game; but almost everything else is ignored. For example, Wal-Mart never got in Katamari Damacy. If video games could only be sold in stores like Wal-Mart, no game companies would take chances like Namco did with Katamari Damacy.
By EB and GameStop merging, it gives more power to them as a company, and in turn helps the smaller game companies, because hardcore gamers are still going to shop at GameStop and buy the lesser known games that will never reach Wal-Mart.
And I mean...GameStop and EB competed with each other...sure. But their biggest competition (well, everyone's biggest competition) is Wal-Mart. Now, GameStop has a chance of not being killed by Wal-Mart's video game division.