Sounds like Karin really had her tin hat on when she wrote that article.
Digital books make censorship easier? I would say that it would make it harder, given the current P2P networks, usenet, etc.
As for ebook readers being pricey, the price has been coming down since they were first offered, and as more and more manufacturers enter the field, the prices will go even lower, just as has happened with MP3 players.
Sorry, Karin, but the $179 that I paid for my ebook reader doesn't even come close to what some kids pay for sneakers or the latest cell phone. Do you consider people who wear fancy sneakers or who have the latest cell phone to be an elite class?
Although ebooks finally seem to be finally breaking into the mainstream, there are always going to be people who don't like them, don't want them, and will never use them. Also, using them doesn't have to be an either/or proposition. I can use a ebook reader and still read paper books.
I would suggest that ebooks might encourage MORE reading because the technology is going to intrigue some, the convenience will draw others, and the ability to adjust font size is going to allow older readers to be able to read despite visual problems.