Yes, despite the cry from ailing publishers, we are still drowning in books. In 2010, publishers sold 2.6 billion copies (in all formats). That represented a 4.1% increase over the previous year. See the AAP site at www.publishers.org press site for the latest info.
The lastest debate is about the high cost of textbooks. Go to the Student PIRG site, www.textbookrebellion.org to see their data and views. With the average student spending of $900 per year for textbooks (GAO data), the expense has become a major consideration. But relief is on the way in the form of less costly e-textbooks from even the major publishers (Macmillan's dynamicBooks and McGraw-Hill's eBook Library) and even open-access (free) e-versions from a variety of non-profits and consortial sites, such as Connexions and Flat World Knowledge.