The attraction of libraries is ALSO the books but certainly not the only thing. Here in the US the library is the only source of entertainment for many families (more than you'd think).
Libraries fill a roll which Google can't, finding relevant information in a society where information overload is the norm. Yes, the role, function, look and maybe even name of libraries will change but they'll still be here.
eReaders are not meant to replace paper books, they are just a different delivery system to get the product to the consumer - that's not a bad thing.
If they do or do not replace paper books (I don't think they will) remains to be seen.
I don't think paper books will ever go away...especially for an author's vanity sake. ;-) There's nothing like holding your baby in your hands and feeling the paper slip through your hands. But I love my kindle. and I am seeing so many more people getting into the e-reading. Just talked to a mom this week who said she got her kids nooks for their birthdays. Yay! That makes me happy since I write MG and YA.
I just had this discussion with my blog fans and all of them agreed that while ebooks are great there is nothing like holding a new book in your hands and smelling the new pages. I one day hope to open my own bookstore and have been told numerous times it's not a good idea since everyone is turning to ebooks but I know millions of people who buy books like they are candy LOL. They may not be as popular but people will always buy books.
I own an eReader (Kobo). I did it mainly for university classes that I have to use eBooks. I also enjoy getting the freebie books or cheap books. However, I REFUSE to fork over $10 for an electronic book when I can spend the same $10 for the real thing. While I don't hate the eReader like I thought I would (it's actually not bad at all!), it cannot take the place of a real book. I do think it will have an impact on the book industry, but I don't think we'll see the end of books as we know it.
I love my e reader and can't imagine carrying around a hardcover again (paperback - maybe). That being said, I think print books are here to stay for a long, long time.