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Ebooks don't replace the beautiful, nicely-bound save-it-forever hardcovers. They replace the Scholastic Book Club paperbacks that get dropped in the soup. And if you have the nice hardcover, having the illustrated ebook edition lets the child take a copy of a much-loved favorite to camp or an overnight trip (presuming the kid is mature enough to be trusted with an ebook reader).
One of the growing problems with ebooks is lack of support for the YA market; there are preschool ebooks (presumably being read on a parent's iPad), and adult ebooks, but the market for 10-16 year-olds is almost nonexistent. (In part, because they can't *buy* ebooks; without a credit card, you can't even set up an account at most sites.)
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