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We are still at the "early adopter" phase of ereaders. As time goes by, the market with shake itself out, without DRM, without rentals rather than purchases, and without proprietary formats, and without idiotic pricing. And as that happens, the advantages of ebooks will become very clear to most people: modestly lower prices, ability to customize the display to the users' needs, the ability to carry, literally, thousands of books around in your pocket, and so on.
No, it's not a fad. Paper books will never go away, but they'll never return to their former dominance of the market.
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