An article in the New York Times today discusses the rising popularity of ebook readers, a subject of some interest to me. I own a Sony Reader and recently have been reading a number of books on my iPhone using eReader. I love paper books, and still prefer them in some ways -- the way that every electronic book looks basically the same, whether you're reading Twilight or The Predator State, bugs me (yes, you can change the display settings, but I want a designer to do it for me!). On the other hand, I always have my phone on me, and when I'm trapped on a crowded BART train, I love the fact that I can read with one hand while clinging to a strap with the other. Not easy to do with a regular book, even a paperback.
There are obvious drawbacks, such as proprietary formats that can't be read on other systems, high prices, and the fact that you can't really lend your book to someone else when you're done. Case in point: the App Store now features Christopher Paolini's latest fantasy novel, Brisinger, for sale at the low, low price of $27.99. The paper version? You can get it for $16.00 at Amazon. But then I guess you wouldn't get all the nifty features like "natural book-like reading experience with full pagination... includes cover art, front matter, running heads and page numbers..." And you can lend it to your friends as long as you hand over your iPhone along with it! Ridiculous. (They do, however, have my current obsession, Twilight, on sale for the more reasonable price of $10.99.)
Still, I do find myself turning to ebooks more and more. Certain categories of books, like current events/politics, that go out of date quickly, I may read on my phone instead of on paper. (Really I should get them out of the library, but I somehow never manage to get there...) And I am racing through Twilight on my phone. I almost forget the format -- the screen almost "disappears." Which is the point, isn't it?
For more intelligent musings on this area of technology than I'm able to provide, I recommend teleread.org/blog.