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I expect paper books to become luxury versions of documents and literature, all of which will be available primarily electronically in the future. Paper books will not be the standard form of distribution, as it is too effort- and resource-intensive, and things are simply getting too fiscally and environmentally tight for that.
We may expect some sort of local services in our future, capable of taking our e-book files and assembling them into paper books individually. Think about that: Imagine being able to go to a local store, tell them what size of format, font, cover, etc, to use... and get back a truly customized paper book. That could beat hands-down a standard book type that this person has trouble holding, this person needs a more durable cover for, and that person can't read the small type, etc.
In the way that most printing has been electronically converted, leaving the printing industry to exist increasingly as more of a boutique business today, I expect books to go the same way. They'll still be around, but in much smaller numbers, probably created individually and customized, and considered expensive luxuries or gifts.
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