There was a time when people said that TV would replace books. There was a time when people said that the Internet would replace books. Books are still here.
I do not think that something (the Internet, computer or other games, etc.) can replace this deep immersion in another world, created only by the imagination of the author (and yours). It could be a detective story, or it could be a journey into the mountains for finding a deposit, or a story about the battle with dragons, but what can replace this sense of immersion? Games. At present, the technology has reached the point where we can immerse ourselves in the game very deeply. However, this is not always a story that we want to read or understand. Take for example Mass Effect and Dragon Age. These are great games that give you the right to choose, where you can create your own character and at least somehow influence the game. But how deep is the influence? The original ME trilogy ends with the fact that Shepard is probably dead, so that we do not choose. In DA each game provides a choice of a new character. The game makes us choose from the already prescribed options. In the world of DA and ME, there are gnomes, and asari, and turians, and many other races, but they are already spelled out, this is the canon. We can see them with designed looks. Designed not by our imagination, but from someone else. How do other races looks in books? Unknown. Yes, there are general descriptions: they are tall, look good and have blue eyes. Well, what about the nose? And the lips? How do they walk? What customs do they lead? These empty places fill our imagination. Only ours, if the cover did not have all the creatures present in the book. The visual perception of the world is beautiful, but it does not give room to imagination. Drawing, writing, playing music is the work of our imagination. It is ours and only ours. And when we read the stories, we create characters how we want. It’s possible that time will prove otherwise and games will replace books, but so far I see only games as the biggest enemy to books. I do not believe that the Internet is a worthy opponent of books, because a) most of what can be found on the Internet is in books; b) If this is not in the books, then you need to find more books; c) even more. And of course, other countries should be considered. For example, the Russian Internet is very narrow in its specifics. Yes, we have people who publish useful videos, but they are negligible. In addition, not everyone has access to the Internet, but there is always access to books on wood processing in the local library.
As for the choice between paper and electronic books, I choose both. Prices for books in my country are very high. And I mean very. high. I read the book in 1K pages in two days and if I buy a new book every two days… well. I probably die from starvation. Therefore, first I buy an e-book and if the book is really worthy of purchase, then I buy a paper copy to support the author.
And as for low literacy rates… I have no answer. Money, probably? To support education in other countries?.. Really, I don’t know.