I am quite thankful for e-readers as they have allowed me to read more books in a more convenient format by solving problems I was experiencing with paper books, namely: storage (I own too many books and carry too many books while traveling) and font size (I have an eagle nose, not eagle eyes).
For all the problems (DRM, bad typesetting) and the perception of (IMO hyperbolic) problems with e-books (oh, Amazon will know which page I am reading -- as if there was not a direct way to turn that off AND as if you couldn't just always have your Kindle with Wifi/Radio turned off), e-books are winning. Much in the same way that digital music won. There are just too many advantages.
The Kindle (or any other e-reader I've seen) can still use loads of improvements in typesetting quality, but just the fact that I can adjust font size and type are real deal breakers for me. Instant dictionary look-up is a God send for those reading in foreign languages, but it can also be improved, dictionary setting should also work per-book, so that I don't need to switch back and forth between language dictionaries all the time. It would also be nice if a new Kindle also did PDF reflow, but I doubt it, Amazon is likely to continue giving it its half-baked support that is just good enough to avoid users from going elsewhere.