Multiple facets to why I do not do this yet. First my background with the issue: I am an extremely avid reader (2 to 3 novels completed a week typically), a writer, and a technology advocate in schools. Not only do I keep abreast of ebook readers and technologies for my own use, but because we would dearly love to move to electronic texts for the schools/students. So, the reasons why not (yet):

1. Visual comfort. I used a Kindle for several days, it was great. Almost as good as an poor to average printed pulp novel (which for technology seeking to emulate paper was actually quite impressive). I deal with printing, typography and output of graphics and text for publications, I'm very sensitive to quality. No other device I've used is even close for long-term readability. There's nothing wrong with laptop screens or PDAs/Smartphones for brief reads, but hours of unbroken reading are noticably unpleasant on the eyes.

2. User interface. The Kindle is good, but the "refresh" ruined it (see 3) in terms of UI. Other device's automatic scrolling isn't comfortable, because a reader's attention wanders and they subconsciously reread passages, meaning total reading speed is not consistent even within pages or paragraphs. It makes you feel like you are either waiting for or racing with the text. The best option, like the Kindle or a read keyboard, is honestly the page down/up button, but unless these are set well apart, they take you out of focus to hit occasionally. The subconscious page flick of a book (and in fact perhaps even the visceral feel of the page as a tangible component of "next") is still a better UI, simpler and cleaner.

3. Suspension of disbelief. Any candy on the device, Kindle included, visually distracts from the reading experience. The human visual system seeks out shapes, contrast, movement, color variation, etc. The reason books are so successful in holding attention is in part because they severely limit the visual system's inputs, creating more emphasis and attention to the text. If you have a full screen device with no front buttons, logos or LEDs, with a matte white finish and the reading program was full screen (no home/dock/quick icons, just the text), you might call this a wash with a book's simplicity. Anything more brings us out of attention to the text, which is what we care about.

4. Availability of content. Not everything is available as an e-book. This is a chicken/egg quandry, but I'm not going to fork out for a Kindle (or whatever the next device will be) when I can't read every text I'm interested in on it whenever I want. Its not that the content offerings aren't good, aren't current or impressive in breadth, but they pale to the collection of books in my local library, so I don't want to spend money on a device with incomplete offerings.

5. Speed of access. I don't have to boot up a book. That terrible habit of dogeared paperback in the back pocket is immensely rewarding while waiting in line places. Kindle in back pocket = spare parts also.

6. Device/content related issues. Having to pre-load content for use, synchronize it perhaps. Formatting issues for non-native documents (even just a conversion step). Software respect, unsupported file types, DRM issues, etc. Paper & ink is paper & ink, and my bookshelf has never locked me out from a book I own, nor has any format been incompatible with my eyes (assuming I didn't accidentally grab from the foreign language section). Practicaly speaking I've never even had to worry about acid free or not.

7. Social perception. Kindle might be a little different in this way, assuming the people looking know what it is, but staring at my iPod/PDA/phone for half an hour makes me look like one of "those people" who can't disconnect and has a gadget fetish. In point of fact I am one of those people, but admitting you have a problem is the first step. I'd like to choose when and how I'm stigmatized though, and pulling out a copy of Faulkner or Pynchon was a much better stigma to work under in college than just being a geek. I know this isn't technical, but I also believe it is a factor for people concerned with their social perception, which is a lot of people. Not saying it is right or good, just that it exists.

8. Habit/comfort factor. This is that "warm" feeling a Kindle/iPod Touch doesn't supply the way slightly rough paper with a dusty smell does. It's the one-handed upside down till you have a headache then flip over and lay the book on the floor hanging over the bed sort of physical manipulation where you know all the properties and limits of a physical book, but you don't read in bed with your Kindle for fear of falling asleep and waking up with bits of screen embedded in your kidneys. If a Kindle or similar was as light and rugged as a book, and maybe had a slightly more welcoming feel (personally, I could see the tacky/high friction old IBM ThinkPad coating as acceptable for instance), then we'd address this.

9. Compelling superiority. Everything I've listed has been about making ebook readers AS GOOD AS traditional paper. Why should I shell out hundreds for something as good, but not better? I know there are whiz bang features, but I'm talking about experience with reading, if I want searchable text I'm not reading for pleasure, but work, and then any device is okay if forced on me. Give me something that meets all of these items above, is less expensive than current readers, AND gives me some really compelling new stuff (off the top of my head, ad-hoc wifi discovery of people reading the same or related books in my vicinity, and a social-networking or just IM channel to them, bring back the book club via Facebook if you will), and then I'll seriously consider it.
Source(s):
Personal experience, continual research and analysis of the field for my job, love of reading.

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