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I think the idea that all book (paper, hard or e) will all be VAT free is a nice idea...and will remain that. The "fair" alternative is to make all books subject to VAT. This penalises those who can't afford to buy electronics to read ebooks on (lets call them "the poor") over those who can afford to buy electronics (lets call them "the better off"). I don't think that's fair.
We could discuss making ebooks VAT-rated at 0% or, even better, VAT exempt but it's not going to happen.
The same argument has been used time and again when looking at food/household products and clothes. Toilet paper is considered a necessity (no VAT or 0% rated, can't remember which) whilst ice cream is a luxury and therefore you pay VAT at 17.5%. There are some really random distinctions made - remember the M&S tea cake question? If it was a biscuit it was 0% rated but as a cake it was standard rated.
Fair? No. But it's the way the system works.
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