Do you think the book is here to stay? Why or why not?

While the use of the physical book continues to evolve, I don't believe it will become fully extinct.
Compared to electronic sources, a physical book has many shortcomings. It's a closed source meaning you can't conveniently upload new information to the unit. A book is not connected to other information via hypertext. And, of course, the logistics of keeping a large volume of work in one place is prohibitive.
The eBook, and to a larger extent the internet, offer an encyclopedic approach to information offering the user a large volume of work in an open-ended, single-source. On page 81, Bolter describes the eBook by saying "Unlike a printed book, which can only contain one fixed text, the eBook is designed to be reloaded." It's an efficient asset for information applications and source citation as well as an application for entertainment.
Just as these pros and cons are listed as they are, for a fan of a physical book, they are opposite. Many people prefer that a book is a closed source offering a concrete beginning and end without distraction to other sources. The prohibitive sense of a library is also appealing as people wish to escape to a quiet place and temporarily "disconnect" from the world. There is currently a trend toward creating private libraries in new homes for this purpose. People like a place to escape with something more physical, less cyber. Ironically, there's a link to this story.
Personally, I like a combination of the two technologies. When I can, I read a physical book because I enjoy the tactile and visual sense of a printed text. However, when a printed text is unavailable or inconvenient (traveling, lack of light), I'm very glad I can still escape into a story via my iPod Touch with its downloaded books.

That is a great picture. I haven't seen a two panel electronic book before; only one. It's really something to think about our children growing up reading electronic books. You do a nice job in here commenting about Bolter's insights regarding books and libraries. It's interesting what you wrote about libraries being a part of people's homes. We are, in fact, putting a "home office" and library in our house, right next to the kitchen. That space in our home will *also* include two computers. You include some interesting insights here about being able to read from your mobile device when printed books are not available. It is a new world!
Coming from a family of educators, the eBook upswing is an exciting thing, especially when it comes to saving education costs.
The textbook publishing industry year after year continues to be public education's greatest ally and most cunning foe - since they publish the lifeblood of the classroom experience, but also constantly pressure ailing school systems to "upgrade" to newer texts.
The eBook allows text to evolve from ballast to renewable asset (at least as soon as textbook publishers catch up on digitizing their entire catalog). The question may be - do they WANT to? When compared to the outdated distribution models lagging behind the curve (I'm looking in your direction RIAA), some companies are content to be "traditional."