But you wouldn't actually have shelves full of kindles. You'd have one e-book-reading device on which you could load books from the computer. Your library could be stored on your hard disc.
Yes, I know I'm being literal here, but think about it.
A single CD-ROM can contain all the books on sacred-texts.com (or at least that's what the site claims). A terabyte of storage, let's say, could contain nearly everything you'd want to read in a lifetime in one compact little unit. Maybe one day we can simply subscribe to a service that loads everything released in our areas of interest onto our storage devices. I'd love to have a larger library without running into any more storage problems! I live in a rather large apartment, but I'm going to run out of space for shelves within the decade at this rate.
The book as a physical artifact will probably demonstrate more traction than doomsayers preach - we still have newspapers delivered to our doorsteps everyday, after all. Eventually, however, there will be a generation that no longer uses physical books except for a few hobbyists - and I can sympathise with these hobbyists as an LP collector myself. But the fact is that the advantages of digital books are just too great to be ignored.
Something is lost, something is gained. The gains outweigh the losses in several important ways, or we wouldn't have switched from oral transmission to text in the first place.