1. Are books losing importance as a source of information and entertainment?
No, I don't believe they are. When it comes to information many people (myself included) often turn to the internet to find something out/check something. However, even with the vast array of stuff to be found, books still have their place and are still highly relevant and in quite a lot of cases are often more accurate than some of the information we find on the net. As for entertainment, both books and the internet are a good source of entertainment.
2. Are e-books the death of paper books? Will paper books disappear?
No and no. Both can and do co-exist. One can enjoy paper books and e-books in equal measure. I once said I would never get an e-reader, but now I wouldn't (even couldn't as I struggle to hold paper books) be without mine. To be able to have the majority of my library in one place that can be picked up & carried around is wonderful. There are some things I wouldn't even consider using an e-book for e.g. recipe books.
I also believe (from what I have read) that whilst in the early days of e-books paper book sales fell, over the years paper book sales have risen again. That might well be to do with the fact that the cost of some e-books is extortionate and absurd. I often find I will delay buying a new book in a series due to the, what I consider to be OTT cost of the e-version - which often is more expensive than the hardback version.
3. Should libraries focus on improving their technological resources rather than building a larger collection of paper books?
I think they should do both.
4. How important are early reading skills in a child’s academic performance?
Incredibly important. Reading shapes a child's entire life and opens up the entire world to them. I would venture to suggest it is the single most important skill in a child's academic performance.
5. Are people who spend a lot of time reading fiction wasting their time which could be better spent doing more useful activities?
Of course not. No one should ever be discouraged from reading. Nor does it really matter what someone reads. As long the person enjoys what they are reading, they should never be made to feel what they are reading be it Tolstoy or Mills & Boon is worthless.