We're both and, not either or people :).
I have to admit that when I can get an app storybook with narration etc. for $2.99 or so compared to $9.99 for print...well...I'm replacing some of our worn out picture books that way if they've been digitized :).
That being said, we have walls filled with books AND iPads filled with interactive storybooks, PDFs for workbooks, Kindle format ebooks, and all the fun educational apps and digital manipulatives, puzzles etc.