I'll say that Paper's day as the Exclusive or primary Format are numbered.
Paper is going to be with us for along time, and even once reading devices are cheap enough that the occasional reader ( The vast majority of readers) can and will buy one, its still going to have niche appeal (LP's anyone?), not to mention the large existing stock.
What I think is going to happen is that Publishers are going to start treating eBooks the sam way they treat different editions of Paper books, such as Hardbacks, Paperbacks, etc and they will become part of the standard release, slowly taking over from paperbacks in the long run .
They may also realise and start appreciating the Long tale of being able to keep a mid line authors older book's in print, and available to buy as opposed to the current system where finding older books by non best-selling authors can be an exercise in futility (despite Amazon, etc., its still not that easy).
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