It's happening, it's just been a very long transition. I'm 99% paperless for my job after swimming in paper just 10-15 years ago. With the exception of gifts, items with sentimental value, or vintage collectibles, I don't buy or own CDs, DVDs, books or magazines; I read a LOT, and listen to music a LOT, and watch movies, but for me virtually everything is digital. I'm 54, and I've operated this way for a couple of years already. It's pretty liberating. My entire library of music, video, photos, magazines, books and business files goes wherever I go, takes up no shelf or drawer space, and is easily searchable and available on demand.

For my daughter, who is 25, and her friends and aquaintences, this is a way of life. My daughter has never maintained any paper files, and hasn't bought any "artifacts" like books or CDs in years.