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I agree that will happen, but it will be multifunction tablet like devices that really get e-reading into the mainstream and drastically reduce paper media sales. Again, not enough people read enough to even think about buying a dedicated reader, but they may well buy some digital books if they're new gadget has that ability.
Paper media won't go away, just like CDs haven't. All the stores still have big CD sections. Personally I still buy all my music on CD even though I do all my listening outside of the car on MP3s.
Paper books will stay as they are better to collect--I'll still buy paper books for the books I want to keep and re-read over the years. But sales will decline just like CD sells have declined as more purchases are of MP3 albums.
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