Santa got our family a Kindle Touch for Christmas. I was until recently not sold on the ebook/e-reader concept as I am a book lover. I have loved reading since I got hooked at about 4th or 5th grade. I read constantly till I got out of collage. Then my time got limited with a full time job, computer games to play and then later a family. I have a few book shelves full of books, mostly sci-fi and fiction, but still quite the collection.
I love how books smell, the feel of good paper (in most cases for hard cover books), and the heft of a book in your hands. I always thought that an e-reader was for people who wanted to show off their new tech at coffee shops. I had not really played with one other then an iPad at an electronics store and did not want to throw down about 6 bills for it.
The Kindle is downright amazing. The e-ink screen is super easy to read and the screen is just as sensitive as my HTC Incredible's touch screen. It has a built in dictionary that I have to say makes your reading experience that much better. Just hold down your finger on that word and it will give you a definition. You can book mark and highlight what you want and then if you have a social network like Facebook or twitter you can share it with others.
Books will sync across platforms as well. (this seems to be limited to purchased material not your personal documents) We can access books on our phones, the pc or the Kindle.
I still will read physical books and don't think physical books are by any means on the way out but now their is one more person that is now a fan of the ebook.