I love ebooks and have been reading them for years. I think the real issue is the one-trick-pony readers. I won't pay for or carry something the is for ebooks only and/or incorporates DRM. I am currently using the obscure linux-based Gamepark Holdings GP2X. I have about 500 novels on it. And a bunch of game emulators, Strider, Quake etc. And a bunch of music. And movies like Fear & Loathing and Blade Runner DC right now. And a whole bunch of other stuff besides.
I really wish the publishers would sell me text files for a reasonable price. Another example of business shooting itself in the foot on the web.