I really like my Kindle. It's a boon when you're travelling and I'm enjoying the sampling facility in particular, and flicking through the classics (must confess I've put Henry James to one side and moved on to less wordy stuff). But I don't like the reading experience as much as reading a book.
I miss the way you can check back on something in previous chapters easily. I feel I'm skim reading more, though I'm not sure if that's a function of the page size being smaller so I'm turning the page more often, leading to a faster feel to the reading experience. (Or it could just be the Henry James...)
A friend tried out my Kindle at the weekend and sniffed that you couldn't see your bookmark get further towards the end. I pointed out the percentage read bar at the bottom but they were having none of it. The bookmark physically creeping its way through the book was important to them.
I'm not fussed by the bookmark (I tend to turn page corners down to mark my place) but I do like the chunky feel of a book, the sense of working my way through the pages, the feeling of achievement as you close the book for the last time. Don't get me wrong - I think the Kindle is an incredible invention, and I'm using mine a lot - but sometimes the packaging is an important part of the whole.
The market is changing so fast who knows what will be happening next year, let alone in the next ten years but I think both ebooks and treebooks will be around for a long time to come.