E-books and the Future of "Real" Books

Now that we've played around with a Kindle, we're becoming more convinced that traditional books will continue to lose market share. We read recently that Amazon is selling more Kindle downloads than hardback books now.

Still, books with photography in general and color in particular (for the time being -- we assume Kindle will offer a color version someday to compete with Nook) will certainly have more appeal in their traditional mode. 

What are your thoughts? Will physical books still be published very much 5 years from now? 10?