I like Borders, but I bought a lot more than just books there. For many years, they were my main source for world music. And they have a nice selection of non-book gifts, especially at the holidays. But for actual books I buy mostly from Half Price Books, which just happens to have opened a new store right in my neighborhood.
I don't have a problem reading on a Kindle at all. I have been able to do everything on a Kindle (mark pages, make notes) that I do on a book; plus I don't understand the appeal of keeping every book I read so it's better for me that way. But there are a few things I rather have on paper like an atlas, poetry, do it yourself/home improvement/home decorating, and of course the puzzle books.