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Paper has a much better visual quality and resolution compared to eInk. If that's your only criteria then stick to paper.
The downside of paper is that it's static (you want a different / larger font? too bad), and heavy (if you don't read >500p tomes good for you), and uncooperative (books don't stay open by themselves so you have to fight the book to read)... Also lots and lots and lots of free books that wouldn't be free if someone had to pay for their printing.
I go with eReader because it has so much more possibilities than paper.
Also, while it's possible to read paper books in low light situations, I don't recommend it. Reading can be hard on your eyes under best of conditions, bad light is a no-no...
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