"Taxes are assessed to pay for the benefits they provide. California offers Amazon no direct benefits."
Not so much. Taxes are assessed to pay for benefits for the people (AKA government), not the entity paying the tax.
"If California chooses to charge California residents for internet purchases, they need to pursue the residents, not the retailers."
Really? When you buy petrol, the government ca't charge tax via the petrol station, it needs to pursue directly?