Deals can be had. My AD pretty much gives me a 15% discount on Rolex (If I were so inclined). On the other hand there is another snobby dealer in town he says "the price is the price, and they are not allowed to discount" (Bull5hit).....
If you really want a Gen, from an AD, shop the grey market (Jomashop.com) and offer ~$100~$200 over grey market prices. If they are a55holes, tell them fine, you will deal with the 'warranty' issues and buy 'grey'. The only advantage to the AD is the paperwork and 'while it is in warranty' service.
Back to the article. I can see them opening Boutiques-- in addition to AD's, but I can not see them pulling out of the likes of Tourneau, Hyde Park, etc. Rememeber, many watch impulse buys, especially by men, are while their wife/girlfriend/mistress are shopping jewelry etc. Rolex would LOOSE money. Plus, scorned AD's would blast them, and sell the hell out of competing brands.