It's not just a financial issue, it's a SPACE issue - you can shelve three paperbacks in the same space a hardback takes up. I'm getting hardbacks from the library, then if I still want it when it comes out in paperback, I'll pick one up using my Borders coupon.
My house used to be a mess with them. I am in the process of moving to strictly electronic books. New on the market this month - a thin seven inch linux tablet with a ten hour battery life.
Not that all of the black and white Electronic Paper readers with two weeks worth of battery life aren't great too.
Newspapers are bulky to carry, and hold so little information comparatively.