yeah, I finally did take the K1ndle plunge, and for me, it's not bad as a reading experience...but it's not as good as a paper book. I find that my focus isn't as good and I tend to skim more. For convenience and for travel, for trying samples of authors (love that first chapter free feature), all that, it's great, but I don't find that I savor books the same way.
I don't believe that eBooks will supplant paper books. To some extent, yeah, but I think they will supplement more than cannibalize. From what I've read, eReader owners buy more books, period.