Of course I still read paper books, even for fiction (perhaps especially for fiction, as the selection available for free in the library is considerably better than that available even at deep-discount sale for my e-readers), as I'm cheap and have a library card and am not afraid to use it.
And especially for certain kinds of non-fiction (as well as graphic novels), the actual books often work better in paper (or at least, not nearly so well in e-), if they're reference or artbooks or picture/chart/graph-intensive items.
That said, I'm fortunate enough not to have any sort of physical or financial issues that would preclude my reading paper books or obtaining easy access to them, and I do live in a place with some very well-stocked library systems with a high quality selection available.
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