They built those shops not just because of tourists, but also because Atlantic County is a burgeoning residential area with minimal retail relative to its population. People that live there have long driven to Cherry Hill to shop, about 45 miles away so the local powers used some of the redevelopment funds that casinos give due to tax incentives and decided to see if retail would stick. So far the results are inconclusive, but it is winter so they really won't know. As for the city itself, I personally think the town isn't half as bad as most people make it out to be. Most people stroll into town and don't even go to more than one casino. If you just drive in and park and gamble, then leave the city doesn't matter much. And most casinos aren't half that bad, biggest problem is the tables are fairly crowded and higher limit. Then again Vegas now is almost always crowded and table limits have gone way up in most Strip places. It all comes down to the fact that AC still will be a place you go for the day, maybe one night max, while Vegas is a long weekend kind of place.
Borgata is nice, but people putting into mini-Bellagio status are kidding themselves. It is a big step up from AC standards, but I would say it would compare to what you would have if you put the New York New York and Monte Carlo together, but then jacked up the table limits. There is more buzz and a lot younger crowd there, not to mention full tables and mostly empty slots, but it still only has a handful of restaurants and a few nightspots.