I'd be willing to put a dollar on they'll come out with a device that can connect to a wireless internet where you can download all your movies and store in your device then plugged into your television. An E-movie collection
Sony is already doing that, although only across their products I believe. (You can see the details on all it does
here).
As for the main question... I prefer books. Its more comfortable to read on a paper than on a shining monitor, specially if you're going to be reading for a long period of time (which I often do). For the same reason, I don't think the printing industry will die, unless they come up with a monitor in which it is as comfortable to read as in paper, but I don't see why the book sales would increase either.
Its just like any other good new invention, such as when horses stopped being used for transport due to new inventions. If they bring a better way to read things, then books will be substituted by it, there's no point in spending so much in paper production, printing and storage for books if you can have everything on a small space that doesn't consume any of those resources.