The analogy isn't a sound one.
VHS is an analog storage medium that is both easily susceptible to damage and degrades over time. Digital video delivers significantly better quality and the files themselves can essentially last forever.
Books, on the other hand, yes they degrade, but they are a physical presence. They're like printed photographs. Even now that digital photography has all but taken over, we still print photos. I think the market for paper books will shrink substantially in coming years, but I think we will ALWAYS have paper books in some form or fashion.
To me, it comes down to the type of book. Honestly, I'd love to have all my reference and history books digitized and able to be instantly called up on an iPad or something. I love the way they look on the shelves, especially some of those massive Oxford classical history tomes, but really, instant search, the ability to overlay historical maps on Google Earth, to zoom in on pictures, and such would be amazingly great.
When it comes to books I actually read page-by-page, I still prefer paper, but with two young kids, my book-every-two-weeks habit has slipped to a two-books-every-year habit. And I have every intention of giving eBooks a serious spin when my iPad 2 ships.
Also, as someone who has beat their head against the publishing industry for several years, I really like the democratization that eBooks bring to publishing. Maybe one of these days I'll get around to publishing my Punic War novel on the Amazon marketplace or whatever it's called one of these days.
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