I don't know if there is a market for digital paper just yet, but a company known as Plastic Logic has been putting out a new e-newspaper reader.
It apparently has some e-ink device that allows a user to download enough content, with memory enough for pages of newspapers, books, and documents.
Surely this could change the newspaper market as we know it, as all our formerly paper journals makes the futuristic technology inbecome reality.
It uses the same technology as Amazon's Kindle, and will do it in black-and-white. It is expected to hit the market in the first half of 2009, and will hopefully be on display in CES in 2009. I wish I knew a projected price.