I have mixed feelings about electronic versions of books and music. Until I tried out my iPad, I thought reading material of any length in electronic form was a ridiculous idea, and I'd stick with my mega-zillions of plain old paper books, even if our house is overrun with the things.
There are times, though, when I love to have a bunch of books and stories and articles (it's quite easy with Stanza software to turn a .DOC/.RTF file or any formatted HTML into an .EPUB file you can load into iBooks) with me, easily accessible, and bookmarked to the page where I left off reading. This certainly won't stop me buying mostly paper books, but it's nice to have another option. If I'm sitting and doing nothing but reading, a book is best, but if I'm having lunch in a restaurant or something like that, it's fantastic to read in the iPad. You can just rest the thing on the table and tap it once every time you want to flip the page, and that's it. Reading a book while eating is a pain in the ass, holding it open, etc.
Same thing goes for my iPod and portable listening that way. I find it's sometimes nice to have a bunch of pending Hypnos demos on my iPod and give something a listen at a random moment, rather than carrying around a rubber-banded bundle of eight or ten CDRs everywhere I go, like I used to do.
Again, I don't anticipate buying a lot of downloads instead of CDs, but it's nice to have a simple, portable jukebox like that.
I do think it's pretty damn weird that some people want to do away with disc and books and just have a bunch of bits and bytes on their various hard drives and solid state drives. It's really true, we already stare at a computer screen too much as it is.