Re: $233bn in sales
Some of that will be completely new sales but the majority of the sales used to be made by local companies who employed local people and paid local taxes
Perhaps for the retail product sales, yes, but that's only around $64bn. The cloudy server stuff is either new business lines that were never offered by local companies, or could have been, but are primarily sold to large corporates who never operated local footprints.
It's been clear for a long while that the Amazon web bazaar no longer has any real relevance to the AWS business, and sooner or later they will split. I'd imagine they stick with it because that's how the whole thing started, but emotion won't hold two dissimilar businesses together in the long run.
When that happens, the web retailing business will have to deliver profits and dividends, and at least start paying serious corporate taxes, prices will go up, and other on line retailers will find it easier to grow. But that won't mean a return to bustling high streets full of local shops - the population at large have voted with their feet and their wallets, and said they don't want that.