To answer the OP's question, that seems a bit high. B&M's will always be higher than online as they have to be. They're not doing the volume and have overhead costs an online shop doesn't have. As mentioned, some states have punitive tobacco taxes (FL, IL and WA come to mind, I'm sure there are others).
If I go into a B&M, they have a nice smoking lounge and the people are nice, I'll buy a few things at their marked up price to justify using their facilities. If I find the prices to be at the gouging level, I'm likely to hang around long enough to be polite and leave. I own a business and would be 10 x more upset if we are ever the lowest price than to find out we lost a job because we were the highest priced. It depends on what you're actually selling and in the OP's case, it depends on what you're actually buying.
I'm generally not walking into a B&M actually looking for tobacco or pipes. In today's society where places to comfortably relax and smoke are scarce, I feel like I'm buying a comfortable chair for an hour or three. If the price for that chair comes in the form of paying $10 an ounce for some tobacco, I feel like I found a bargain. Of course, I could stand outside the hotel in the freezing cold and enjoy the $5 I saved.