You can always buy Amazon gift cards through Gyft. You can always get gift cards for a bunch of other retailers. I recommend checking it out

Ya I know, but it kind of defeats the purpose in my mind. I mean right now I buy bitcoins with cash. So if I wanted to shop with giftcards I could would just skip the bitcoin part and buy the giftcards with cash as it would save money and time.
True. But purse.io is also worth a try if you're thinking about getting a gift card more rebates IMO and there are various safety tips to follow.

...Now if I could only do that on amazon or at my local deli to buy beer, eggs, bread, and milk I would close down my Citibank account and go totally bitcoin. You hear me bitcoin DEVS, make it happen.....

You can always invest in one of the several bitcoin debit cards that's available. In that way you can spend your bitcoin at your local deli. Bit-X and Xapo offers a card that is directly linked to your wallet [think there is others also] so you do not even have to 'load' the card beforehand, just swipe it and the amount comes off your wallet.
The debit card companies are already jumping on the bandwagon. VISA has come out with a Bitcoin debit card. So yes, your dream to shop at your grocery store with bitcoins could just come true. Let us hope the virtual currency does away with scams before that happens, makes it more safe and reliable.
But the premium that you need to pay is much much higher than directly exchanging Bitcoin on an exchange and transfer it to your local bank account. AFAIK, Visa hasn't came out with such a thing and is unlikely to come out with it. Any link to this news? The only Bitcoin spending card I can think of is coinkite.