Things to consider:
1. Ebooks are cheap, small and easy to get a hold of.
2. Readers allow you to listen to music watch movies and work on documents
3. The technology will get cheaper, better looking and smaller
4. Remember all those authors who couldn't get an agent or publisher. They don't need them anymore
5. The new generations want convenience not quality
I say these things because I don't think people really look at the trends enough. Someone brought up the death of the music industry. Yes the industry is dying but I see more and more people with underground music on their Ipods. I've also noticed that nano's and touch's sell pretty well. (FYI I work at a best buy in MI).
Looking at everything across the entire field of electronic media, it's all moving to centralization. What I mean is that within the next few years, the tv, mp3 player, computer and ereader will all be one device or one system. The storage is getting bigger and the technology is getting better. You say you don't know about readers but they are becoming more common. The only reason they aren't out en masse is because they are hard to find in a store.
I can guarantee you that if Best Buy, WalMart and Target all start selling $199.99 Sony Readers and had the electronic bookstore to back them (thanks to google it looks like it might be coming soon) then it won't be long until paper starts getting thin. Especially with studies saying that that emissions from paper publishing outweigh what you get from reader and ebook creation.
If the reader prices keep dropping and the marketing comes next I don't doubt that one day I'll see one in my stores. And trust me, those things will sell so easy during holidays, back to school, on mother's day, father's day, grad presents....etc.
You need to understand it's not just your favorite books.
For a religious person: 2 - 3 versions of a bible or torah or koran...in your pocket.
All your favorite authors works...in your pocket.
All your favorite shows...in your pocket.
Netflix and Blockbuster streams...in your pocket.
Your favorite tunes...in your pocket.
Your novel, manga, biography...wip, guess where....in your pocket.
And you won't need Sprint, AT&T, Verizon or any other monthly service
All on one device. Can you do that with paper?
And one last thing I want to add...
Most of us grew up with books, bikes, action figures/dolls. A few grew up with computers. I have a 3 yr old and a 4 yr old. Both can use the computer better than their grandparents. The one's who will buy these ereaders are going to be our kids. They'll go to school and college and complain that all their textbooks for the semester will cost them $50 total and we'll shake our heads and tell them how much paper textbooks used to cost.
Even funnier....They will buy readers for us for mother's day, father's day, holidays, etc. They'll buy them for us because they know how much we like to read. They'll show us how to make the font larger so our eyes don't hurt. How we can hook them into our car stereos and let the book use its text to speech feature and read us the story while we drive. How to access the google book store from it because it just needs a wifi connection (and google has nationwide wifi). In short get used to it now or get used to it later. Sooner or later you will have to accept it.
The music industry did (mp3s). The movie industry did (blu-ray & imax). The automotive industry will (electronic & hybrid). Library's have (Wikipedia & google). The publishing industry will.