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I'm one of those folks who won't buy the hardback version of any book if it's likely to come out in paperback at some point. (OK, one or two exceptions for books I really needed and they were only in hardback at the time.) I was to the point of paying up to about $15 for paperbacks on my book-buying expeditions to the US. (Only way to get English language reading material - prices here in France are outrageous.)
But I've found since getting my reader last spring that you can put books on your wish list and just wait until the prices come down. So far, I'll usually grab up a book on my wish list when the price drops to $9.99 or less. I've paid (a little) more if it's something of particular interest (usually non-fiction), but so far I'm more than happy to wait them out for a drop in price.
As more folks give up hardbacks, the paperbacks and e-books are going to have to earn back the initial set-up costs and author advances before the prices drop, so I don't expect overall book prices to drop over the long term.
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