Unless I'm mistaken, I think most dealers make most of their money on service/financing. They don't draw a large profit on the sale of the car itself. If there are dealers, the issue is going to be markups, similar to what we saw with COVID and what Dodge dealerships are doing with their "Final...
It's all a money grab. I've had pleasent experiences at dealerships in Oklahoma (most recently Audi of OKC where my wife and I bought a new Q7 for her). That being said, there's ZERO reason why states should be banning direct car sales. Heck, they can even pop on a sales tax for being purchased...