I think the market has evolved into something more akin to "print on demand" photo books. Every place on the net that offers you the chance to view your digital pictures also offers you the opportunity to print those pictures out into a book. And as the parent of 3 small kids I can tell you that people do buy those, they make great gifts.

The same logic applies to general pictures as well. Instead of going to the bookstore and looking for a photo book of antique cars, for example, you might be better served by heading off to Flickr and finding your own pictures, and then using on of the online binding services to compile it into a book. There will always be people who prefer the physical medium of a book, and there will always be situations where people just can't do the computer thing, and much prefer the "old fashioned" way.

You might well have asked if the market for picture frames is drying up. Same general idea, right? You can see the pictures online? All it does is change the market -- now we have digital picture frames. I'm expecting a day very soon where I can have an entire wall of digital picture frames, updated wirelessly so I never have to print and swap out pictures again. But I still want my pictures up on the wall for guests to see, without having to get everybody crowd around the computer.
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I think there'll still be a niche for photo books on the coffee table. Some people just like to have them there to glance through whenever they need to. Older people and less tech savvy people also don't tend to really use the internet as much as they could and would buy them.
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No because books can have more info on them than the net because the net doesnt have everything you need. to get the best you need to fuse pages with webs.
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how do you define photography book?
if it is a coffee table book, the answer is no, as they will (and have to) be around even with digital photography.
if you mean tutorials, I would say that the basic techniques for taking good pictures are the same today as they were years ago. Nothing has really changed, only the medium for storing the 'negative' on is new. Also some old techniques for enhancing photos are still in place (although having a digital equivalent now).
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