I think he makes some good points. Although he seems to not quite "get it" as it relates to music. For some people, the physical record with album art and liner notes is just as important as the hard cover book is to him.
But I do agree that ebooks are a good way to expand the market, not just cannibalize existing readers. I think that is one reason we have the pricing issues we have...a desire by publishers to no cannibalize their paper book sales.
His thoughts about ipod-esque adds is a good one. A kid with a kindle, and Percy Jackson hops out to sit by him? Nice.