You make a powerful case but I don't think the demise of paper books is quite as innevitable as that. Technology is also working in favour of paper books because printing is becoming easier and cheaper. Coupled with the digitisation of book content, paper books can continue to be sold on a "print on demand" basis indefinitely. They may end up being more expensive than ebooks but I would have thought they would continue to be available to those who choose to buy them. If the costs of printing individual books continues to fall, it shouldn't matter how small a minority are people like me who are willing to support them.
Long live the paperback book!
I think you are probably right there FE - and I suspect there will continue to be a market for glossy coffee table books, also for food recipe books (you probably don't want to put your grease covered fingers all over your nice shiny eReader) and I'm sure there are other niches that will continue to publish on paper. As far as straight print only books go it will, I'm sure, be market driven; so long as people are buying them they will continue to be printed. And I would guess that is likely to remain the case for at least another generation, so I'm certainly not saying printed books will disappear in the next 5 or even 10 years.
Just stop and try to imagine the situation 100 years from now with massively more sophisticated technology than anything we have today; I simply can't imagine books still being printed on paper then, except possibly for very specific niche markets.