Firstly, I don't own a Kindle, but I think it's a good thing. Anything that gets more people reading more is good.
Amazon in light of the iPad, have slashed the price, which again is a good thing. And amazingly, Amazon is now selling more digital books than physical books. This doesn't include all the free ebooks either! This is also great, that so many people are engaged in books.
However, Amazon have just announced a few deals with authors to have their content exclusively on the Kindle ebook store. This is bad and it's not unknown authors either, it's the likes of: Oliver Sacks, Philip Roth, as well the estates of William Burroughs and John Updike.
The network we've created is about making things more accessible, not less. I don't like the idea that I'm being penalised for preferring physical books. This is similar to when the record industry (in their stupidity, again) tried to stop producing vinyl even though demand was still very much there.
I'm working abroad a bit right now and I've been away from a lot of my books (and things in general) and I've really noticed the difference.
I really like the analogue nature of books, but that's not the only reason I buy books. I like having shelves, I like seeing the things I have read as well as those I haven't.
This is where physical beats digital hands down for me. Not just when I'm listening to it or reading it, it's the bit afterward that physical does significantly better; when I want to be reminded of a book or a record, I browse the shelves.
In a way, the container is as important as the content.
The books and records I own, act as triggers for my memories and stimulation. I almost never unearth old classics by browsing file menus. I do it by looking at CDs or records collected together.
Yes, this is what cover flow (iTunes) is intended to do, but isn't it sad that digital has to replicate physical behaviours (flicking through records) to function. I can't recall all the books I've read but I need to simply to pass a bookshelf in my house to think, oh I should read another book by Asimov or Bukowski.
Anyway, I am clearly biased. I would be intrigued to know how much people browse through file libraries to remind themselves of last years listening or how people catalog or understand what they've read.
Perhaps other people simply have a better memory than me. I don't know.