Another aspect of this debate that should be taken into account is the issue of research. Granted, most, if not all research journals are now available online (and a great deal of them exclusively at that), and most people won't ever need to go into a library archive to search for information. However, older issues of many of these journals are yet to have been scanned, and it will be a long time before every single archived piece of info is available in a digital form. This also applies to a great number of books of all kinds, which means that pretty much anybody who likes to read will sooner or later wind up having to look for a paper copy of one.
As far as my own preference for print or digital, I would have to say that I have no quarrel with either. I might lean slightly towards digital, as my eyes aren't weak enough to not be able to withstand looking at a screen for a long time, and there is no question that my apartment could stand to lose a few pounds and square feet of books right now, lacking in space as it is.
Just you wait!
"Kindle, now with Smell-O-Vision!"
You know one of those marketing geniuses will think of it sooner or later.
Edit:
As far as the lighting issue, I much prefer reading on a screen in all situations save direct sunlight. Ever spent a sleepless night reading in a dimly lit room? Or sitting near a window on a sunny afternoon? I certainly have, and I must say that the screen was easier to read from than the page in those instances, given the uniformity of the lighting.
Jam it back in, in the dark.