Absolutely correct about the Canadian prices. I have spent the last 2.5 years here, and I get your point about selling other stuff (like Chapters/Indigo already does).
The thing is, that other stuff can also be bought online. People browsing for books in store (before buying it from Amazon), don't really buy those other items either (why should they). So, these stores aren't really gaining anything from people browsing their selection, other than perhaps taking a cut from coffee shops.
On the other hand, if I want to gift a book, I almost always pick it up from a store. I generally don't plan ahead enough to order from Amazon (no Prime in Canada either :)) and dropping into a store works well. I am caught in two minds about these stores, I love going there, but I can't figure out a way for those guys to turn a profit without charging us the premium that they do.