The only reason I would actually want physical books is because having a nice and organized shelf of them is nice and feels pretty good, as opposed to just having a little iPad or Kindle.
A way to read books digitally and on the go is logically so much better than having to pick one book and carry it all around with you. Am I saying that physical books have no value? No! It's a lot easier to get attached to a physical book and simply having that new book smell and feeling the paper between your fingers as you thumb through the pages is a joy. Still, it's impossible to escape the fact that you could carry your entire book collection in your back pocket, anywhere you want to go, so I have indeed switched completely to Kindle.
EDIT: Except in the case of libraries. It would still be possible to have stationary Kindles or some sort of computer reading thing set up in libraries, but for now I can go into a library and rent any book for free. No charge. And take it home and read it at my leisure. That sort of thing is priceless when it comes to keeping people educated and keeping people reading, and it's so great for any community to have a public library. Digital reading media hasn't quite figured out how to do this yet, and I doubt it ever will because it isn't exactly profitable, so there is a logical benefit for keeping physical media.
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