Personally, I will never buy another paperback book if I can avoid it and would love to dispose of the few hundred "kicking around" the house.
I agree there is room for paper books: coffee table, picture, children's, etc. I just don't many of those.
But for mass paperbacks, or one off reads, I am delighted to have an e-reader.
It's even cost effective with a good ROI: net-net, for the stuff I've read since I bought a Kindle, I would have easily paid much more for the reading material had I shopped for paper copies at my local book shop and second hand dealer for classics.