I'm going to make a bold prediction: e-readers will never replace books, bookstores, or libraries.
There, I said it.
E-readers will continue to rise in popularity for some time to come, but that doesn't mean that the good old codex (bound book as we know it) is doomed to extinction. Not everyone will have the means to buy an e-reader. Of those who can, not all will want to. Many people will use both formats. E-readers can be very handy and helpful to many people, and that promotes reading, which is all to the good. But consider this: it's much more likely that an e-reader will be lost, stolen, or crash irreparably, losing your entire library in the process, than to loose a home library of bound volumes lining the walls to flood or fire.
Now, it is imperative to know some history in order to have a prayer of predicting what is likely to happen in the future. Radio did not replace live music performance. Movies did not eliminate theater. The VCR and later the DVD player did not replace the movie theater, in spite of dire predictions of the death of movies and/or movie theaters. So why should we think that e-readers will replace the bound book? There is a place and use for both.
Recent studies show that children who grow up in a house full of bookcases lining the walls and holding hundreds of books (or more) are 30% better at academics, college, and the advantages all that does for careers. It was the single most powerful predictor of success. The e-reader is very limited in that regard and cannot fully supply the same function.
So never fear. On with e-readers and on with bound books!
www.strategicpublishinggroup.com/title/Angela1.html (to see my book).