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To answer your first (and third) question, for me, it's all about content. I want to have everything I ever want to read available as ebooks and we aren't anywhere near there, yet. Books, textbooks, newspapers, magazines, reports, etc. I want it all available to me. Worries about format conversions, the potential for digital piracy, the long-term supportability of formats, and DRM are all related issues but these are secondary, in my opinion. The available ebook content is sparse, mostly of recent titles (plus public domain titles), includes few newspapers and magazines, is avoided by some authors and/or publishers because of piracy worries, and is, in some cases, is limited by the display technology (e-ink doesn't match well with high resolution color graphics, for example), and PDFs (the standard in digital content for the PC) are awful, usually, on ebook readers unless they've been specifically formatted for the display sizes (usually, 6"). These problems will ease only with time as more consumers demand more.
Why won't some people try using ebook readers? Cost, mostly. Most people who have $400 in hand would rather not spend it on a reader so that they can then also spend more money on the ebooks they want to read. Convenience and the "next cool gadget on the market" will keep interest high, but prices will need to fall to make significant market gains, I think.
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