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Morlac -- I think you're right about the audience motivation. Early adopters don't buy much paper on Amazon or bn.com and worldwide Kindle/Amazon is not such a leader as in the US, plus of course DRM smells.
Yet I do buy most of my books on Amazon and now got the Kindle! I also had worked for Amazon before and am a Prime member. It doesn't give me any discounts, but I know that my people understand technology well. DRM is the publishers' decision -- Amazon is run on Linux and all geeks are pro-Open-Source. So I'd separate the DRM question.
Still I think that Amazon and now B&N are in a unique position to complement paper with ebooks, and it's going to happen, sooner or later. Too bad if you're elsewhere in the world, but the US is the cradle of technosocial and business innovation, so you'll have to look up to us and follow the lead... Not much to work with here.
After some perusal of the Kindle, I often go back to my paper books -- because they are black on WHITE, not black on grey. Some books I'll always prefer on paper, such as leather-bound classics. Yet a lot of books are perfect for the Kindle -- heavy manuals, NYT bestsellers which are $10 each, etc. I generally buy computer books in a dual format, such as from Manning early access program (MEAP) -- the PDF is available at once, which goes onto the DX, and the paper arrives when released.
So I still think for those who like to sit on both chairs, the digital upgrade model will work well. The question is to social-engineer it properly.
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