In general, I don't personally mind reading a scrolling display; and I definitely see Elfwreck's point about wanting to place exactly what you're interested in together in one view. (I think about what I do when I read the forums. I don't read one post, then the top of a second, and then scroll to the bottom of the second. I put the entirety of the second in the window before I begin reading.)
I just wish that it didn't mean giving up things like full justification with end-of-line hyphenation, which it usually does (e.g., with Web browsers).
As a university instructor, I'm quite accustomed to referring to page numbers, and as of yet, I haven't seen a good alternative. Sometimes sections and chapters, etc., are enough to refer to, but often books aren't really structured well-enough. (I find this especially true for books that began as transcripts of lectures.) I don't know much about Kindle's "locations", but they sound a little too narrowly individuated.
If I tell my students to "read pages 12-44" now, that's far less of a mouthful than "read locations 1150-1797". And at least some of them will want to read on paper, so they can highlight and scrawl notes. Having all these locations printed on the page would be distracting.
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