There's nothing like the feel of a real book. I prefer holding a book in hand, flipping back if necessary. And although you can do this on an e-reader, it just doesn't feel the same.
My children gave me the SONY Reader this Christmas. At first, it seemed yet another technological hurdle to jump. The set-up turned out to be very easy and I like the simple steps at the SONY Store to purchase books. All the ebooks from my computer were easily downloaded into the reader. To see them in digital format, to be able to walk away from the laptop and sit in the living room in a favorite spot to read them felt heavenly. I mastered the quick swipe to turn pages and being able to make the font larger was a treat.
I switch between paperback and ebook now. One best seller, a huge monster to tote around, was easier to read in this venue. There are many options I still don't use, but for reading, it's just fine. It's great for travel, and when you turn it back on, the page you were reading is right in front of you.
I don't think e-readers will ever take the place of paper books, but it's a great device that's simple to use. Reading for hours without having to stop and rest my eyes is a big plus as well.