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Based on a recent holiday, I'd say Kindles and other e-readers are definitely thriving. Four years ago when I first went there with my Sony PRS, I had loads of people ask me about it, but there was no-one else there with an e reading device. This year, almost every person who was reading was doing so using a Kindle/Kobo, or in fewer cases, a tablet. Out of maybe 50 people reading I saw 1-2 who had actual paper books.
This is in a demographic of people who were mostly 40+ and many were older/retired and you'd typically expect them to shy away from tech.
I respect of how many Kindles a person would need - the devices will be replaced less often, but that said, I've just upgraded an old device which had gone wrong after 3 years. Another friend also did the same, so these devices do have a relatively short life cycle, and given they're mostly plastic are easily cracked/broken if dropped or sat on.
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