They Sure Can...
I think both ID and B&M distributed speakers have a place. Some folks just can't get the "warm & fuzzies" from ID companies because they're not able to physically hop in the car and drive to the store. As silly as that might seem to some, it's a serious factor in their decision making.
B&M offers advantages of being able to deal directly with someone you may be able to develop a rapport with, something you'll have a tough time doing with ID sellers. B&M also allows you the convenience of demoing speakers in store, while not the best gauge as it's not your equipment and listening environment they're working with, it does provide some starting point to work with.
ID sellers (more so as of late) are offering better and better products coupled with very convenient return policies and highly competitive pricing, making it easier to allow prospective buyers the opportunity to demo their products in home, where ideally you'll get the best gauge for how they'll perform and if they're right for you.
While some B&M distributors can offer some excellent products, ID can as well. To say B&M doesn't compare in pricing, quality, etc. to ID and vice-versa, it's a bit narrow-minded. They both can provide a good product, quality customer service and at a decent price, whether they do or not is up to the distributor themselves. Suffice it to say, ID can certainly compete with B&M and both have a place in business... -TD