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I honestly think digital will win out simple because of economics--not because it's better for everyone. While the editing, artwork and overhead of such is by far the largest cost of getting a book to market, with paper books there is still paper and delivery. I think eventually the paper and delivery costs will get so high that people who want to read will find the difference in price...moves them to digital. Right now those costs are all kind of spread out--Amazon covers shipping if you order enough or have prime, B&N does the same, etc.
But eventually, the cost of warehousing books and getting them to a bookstore is going to become costly enough that there will be a benefit/price break for digital that we don't see today. (Well, we do from some publishers.)
Even with print on demand you have the cost of the machines/ink/paper and employees to run the thing and package it. Shipping costs have been doubling and there is no end in sight.
I think we can look to newspapers and see the trend. Less and less people are willing to pay for getting newspapers. Advertisers aren't willing to carry the entire cost either.
Right now we live in a lucky world. We have many, many choices. But even my librarian was lamenting that the more things went digital, the less need there was for librarians. Sure, you need some, but as things are automated, you need less of them.
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