Digital publishing is growing, but by no means is conventional paperback dead as yet. Interesting to note the primary reason (according to this infographic) people give for not transferring their reading to a screen: that they aren't "willing to abandon the 'paper experience.'"
One big advantage is the space a Kindle or iPad can save you, as well as the ability to take hundreds of titles with wherever you go. Practically speaking, digital is better than paperback. With the iPad 3 screen resolution at 2048x1536 on a 9.7 inch screen, soon enough your eyes may not be able to discern between a page on an eBook and the real thing either. With digital books being cheaper to produce and distribute on top of bearing Mother Nature's stamp of approval, there can eventually only be one winner.