When we read pBooks, did we go clamoring for paragraph spaces? No we did not. Did we even thing ... hhmm.. this book would be better if it only had paragraph spaces.... No, we did not. Why did we not do that? We didn't ask for paragraph spaces because they do not look nice.
....And on an eink device, all they do is cause more page tunrs and use up more battery and still do not look nice. The way most books are formatted, we use non-indented paragraphs to designate the beginning of a new section be it a new chapter or a new section of a chapter.
....It is easier to read with no line spaces and indents. The paragraph spaces throw off the eye and make it harder to read. Especially when you get a lot of one line dialog scenes. That really breaks things up way too much and makes it even harder to read.
....Do you want to make it harder to read eBooks for people or do you want to make it easier?
Oh - that's better. No nasty paragraph spaces.
I think the difference might be down to the resolution of the device. On low-res devices(< 100 dpi), a paragraph space might be better. On eInk (> 150 dpi) I much prefer no paragraph space, but an indent instead.