"I can pay $400 for an e-book reader, and then pay $7.99 for an electronic copy of a book, or I can just pay $7.99 for the actual book, which requires no expensive intermediary equipment to enjoy, and use that extra $400 to buy 50 more books." Link.
Pretty much sums it up, aside from the fact that it's hideous. Wasn't Amazon CEO Jeff Bezos also the guy that thought the Segway was a good idea?