Hmmmm...this is very interesting. I don't know whether or not books are on their way out, but I don't really think it matters. Things change, but what I think most people misconceive is what they wind up changing into. It's happened in the past, a certain thing has been all the rave but it turned out that the truly phenominal thing of that age wasn't the obvious thing but something much less noticeable.

Maybe it won't be the internet that winds up being the defining moment of this generation, though I can't imagine what else it'd be.

Actually I'll go as far as to say that books are already dead. Kurt Vonnegut mentioned something multiple times in his book Timequake about how he could feed his family by writing short stories in the fifties, but then when television became popular he had to go find a real job.

Lastly I'll say that not only will books be gone, but that it's happened before - "Stories passed by spoken word are here to stay, not because they should, but because there's no replacement for them."