The surging popularity of e-readers makes me ponder this question occasionally. Then I ask myself, well, have horses and buggies disappeared since cars became widely available? Is there no market for antique furniture anymore, now that new furniture is so affordable (thanks, Ikea)? Has the supermarket put gardening out of business? Do they still show movies in theatres, or are DVDs and Netflicks the only options?
Granted, these things have become hobbies or indulgences rather than the essentials they used to be, but they are still around. Different, and perhaps less profitable, but definitely still around.
As an example, here are the latest statistics from Paperbackswap.com. (If you're a member, you can check out the stats yourself at the "Pulse of Paperback Swap" section.) These stats almost certainly include a certain number of audiobooks, but I'm willing to bet the vast majority are old-fashioned paper and ink.
Books Available: 4,939,716
Books Posted in last 60 minutes: 1,216
Books Posted All Time: 18,545,250
Unique Titles Available: 663,975
Books Mailed All-Time: 9,987,353
Books Mailed in last 7 days: 58,541
Books Mailed Today: 4,612
It seems that there are plenty of people who still want the traditional reading experience. Count me among them. I understand the rewards of convenience, immediacy, and adjustable type size that come along with an e-reader. But no matter how inexpensive they get, I doubt I'll be tempted.
For me, the intangibles that come with a book are hard to beat. A well-stocked bookstore--new or used--is a delight to the eyes. Once you get the books home, they look great in any room of the house. Stacking them up in a literal To Read stack develops a delicious sense of anticipation. And unexpectedly discovering a long-sought title in some obscure used bookstore is, well, a superior thrill.
E-reader? No thanks. I'm paper all the way.