There is a Kindle. iPod Touch, iPhone, and a real book. When we met for the first time a few weeks ago, we only went over the first half of the book. Over the weekend, I finished the 2nd half. I had some time so I went to Borders to thumb through the actual book to look up some thing that I had a question about. I was using the iPhone version of Kindle and to my knowledge, there isn't a search or note-taking function. That's an entirely shortcoming that's Amazon's fault, not the whole ereading experience.
As I was thumbing through the book, there was a tinge of nostalgia that I kind of missed from not being able to flip through the book page after page. I guess I'm still old-school even though I've been reading ebooks since the Palm V days.
And then there's the whole taking notes in paper that is different from doing it on Kindle or Fictionwise's mobile app for the iPhone. Actually, in my case, the notes I took for the first half of the book was taken on the back of a couple of receipts I had in my pocket when I started reading.
I don't think books will go away. Well, at least not in our life time. I think it's entirely possible we'll see a whole generation grow up reading only electronically. Meanwhile, I don't expect to give up buying books on Amazon or locally any time soon. Perhaps as I get more and more used to reading electronically, I will end up buying less physical books. Still, the whole experience of going to a bookstore, walking up and down isles, and find what I want or just happened to come across a new novel isn't something I'm willing to give up even if ebooks may be cheaper or convenient.