As a fellow college student, I have to agree with you. I would hate to have to use a Kindle for my school reading. If the Kindle textbooks were cheaper by a significant amount (i.e. a factor of ten), then I might be forced to reconsider my stance for economic reasons, but even then I wouldn't like it. As I see it, the Kindle offers two advantages over paper books: lack of weight and easy searchability. These are both nice things to have, but certainly they don't outweigh the many disadvantages of the Kindle: need for a battery, annoying interface, a proprietary file format, etc.
For pleasure reading, the Kindle is even worse. When I read a book, I want to actually read a book, not some digital facsimile thereof. If I want to find something new to read, I want the ability to go to a bookstore or the library and browse actual, physical, paper books. If this makes me a snob or a technophobe, so be it.
Finally, I find it very amusing that Princeton is being all high-and-mighty about its Kindle project being sustainable. Paper books, if properly cared for, can last hundreds of years. I have some books that my parents purchased before I was born which are still in good condition today, and I'd like to be able to pass them on to any future children I might have. Will Amazon still support today's Kindle format 50 years from now? Maybe they will, but I'm a bit skeptical.