I participated in anotherwhere I argued that tablets will not make e-readers extinct. People have been saying that converged devices will wipe out dedicated devices (point and shoot cameras) and for the most part (personal navigation devices are mostly gone) that has not happened yet. E-readers offer many advantages over tablets, especially for those who are serious about reading. Casual readers may be fine with a tablet or smartphone, but nothing electronic beats an eInk device.
Adrian made some great points in his argument and I do think that devices like the iPad are the e-reader of choice for many people. I have written here a few times that a distraction free environment on an eInk device gives me a much better experience and continue to find my Kindle Paperwhite to be my primary device for reading. The audience favored my side of the argument and Rachel awarded me the win in the end too. If we take a look at this issue in a couple of years then the numbers may be reversed, but for now go out and pick up a sub-$100 e-reader for yourself or a family member this holiday season.