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Remember also that most trees cut down to make paper today were grown for that purpose.
Audio books make sense - you really shouldn't be reading anything if you're driving the car during the morning commute, and reading while you're jogging is tough at best. Unfortunately, radio drama is a dead art form in this country, radio is homogenous crap, and music is too easy to tune out. That's why I think audiobooks are as popular as they are - all the benefits of "reading" but turns it into a passive activity.
I think e-books will eventually serve a few specific niches: periodicals which are expected to have a short life and paperbacks. To put it less delicately, 'disposable' reading you aren't expecting to keep.
For things you really want to keep, a well-made hardcover will last a heck of a lot longer than the e-book format du jour.
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