As for preservation, well, my digital records of text are still fine. When technology changes, likewise I will upgrade my text to be assessed in new formats - the same way books went from scroll to codex to printed books - I can change my library from text to pdf, to epub, to whatever.
The technology is only getting better - the emergence of CDs did not kill music, therefore I see no reason that something cannot take over. There will always be people who argue vinyl is better, but for most of us, even CDs are becoming things of the past.
Take a look at the VHS for instance. Who still releases new ones? The trend has been to convert movies into digital format, a form that is much more easily preserved. Entire archives will be converted.
The very way we access information is being reformatted. With it industry is being changed too.
North America, and the Western World in general is slower to pick up on it. Asia right now has excellent markets where books are bought and sold in serial format similar to the 19th century newspaper serials online. with it comes artists who need not go through major publishing, and can rely on their readers to go through their books for sales. Such direct contact and pay-per-word transactions put the text back where it should be.
Digitalization is not a bad thing. It is unavoidable. Print technology costs money, web hosting for documents is virtually free. A text file takes up virtually no room.
The ones who should be complaining are the major publishing firms, as they rely on inflating prices for profit. With all the free texts available, such a middle-man is no longer necessary. Authors will charge what they want, and publish online. They will be awarded cash for their work, and readers will have access from them. Amazon already makes more money in sales of electronic books (inflated in price, I might add) than they do in physical books.
I suspect eventually even the whole idea of buying books will become dated. Soon people will just get sponsorships from publishing in the form of advertisement grants. Youtube has already done that, and soon it will be the norm, I suspect. Charging for the book will become less realistic than charging for the space around or inside the book. I bet companies will even pay to have items promoted within books, as they pay to have merchandise sold within rap songs.