The appeal of having a library of books on a single device is very high but it still can't beat out the appeal of actually holding a book for most book lovers. Books will never actually be obsolete.

There is a grain of truth to what you say because we've already seen an explosion in electronic media and a stagnation of print. But print will never be obsolete. Because print lasts for lifetimes, can be taken anywhere, can't be hacked or hide a computer virus, needs no power source, can share forbidden info with less of a trail, and has tradition and nostalgia backing it up. Sure, it will probably always be on the losing end from now on to computers. But coming in second, even if it's a distance second, still doesn't make it obsolete.

Possibly, but not anytime soon. I prefer reading book to an e-book any day. There's just something so satisfying about having a physical collection.

I think text and reference books are now, more or less obsolete.

The only advantage books have over computers at this stage is that a short, specific piece of information can be easier pinpointed.

Trying to find a specific piece of information on a computer can, on too many occasions, be akin to trying to fill a glass with water from the Niagara Falls.

However, it's only a matter of time before computer technology takes a giant leap forward at which point data will be easier targeted.

It seems there are two arguments here.

1.) Are computers making physical books obsolete?

Will it happen someday? Possibly. It all depends on personal preference. Fortunately there still are enough of us that would rather read from a physical, tangible book as opposed to an electronic device. This, at least, is how I feel about novels or even many non-fiction books. Text books or other material used in education I'm all for moving to electronics just simply from a cost perspective. How much do schools spend on buying complete new books all for the sake of either updates or corrections?

2.) Will reading become obsolete because of the audiobook?

No, I don't think it will. Many people read because they actually enjoy it and value the mental and intellectual exercise you gain from the activity itself. Both also have their conveniences. If I'm spending time with my family but not actively interacting with each other (i.e. spending time in the family room in the evening) I find reading to be a better option because it does not give the appearance of trying to exclude myself. Wearing headphones with others gives the appearance you're there, but have no desire to interact with those around you. I'm not saying it's necessarily true, but that is the perception. On the contrary, if I'm alone in the car I will often listen to audiobooks. That's pretty much the only time I listen to them. Even if home by myself if I try to listen to an audiobook I find myself distracted with other activities I can do while listening. A book forces you to focus on the material itself.

Bookstores are dropping like flies but I still think there will always be a niche for book lovers.

I'm pretty sure "computers making books obselete" is not the case. I think it's "Books are going into Computers".