Mike Shatzkin at Publishers Weekly forecasts what to expect in publishing in 2008. Two that stood out:

5. Christmas 2008 will be the first one in which sales of customized books, enabled by the Internet and print-on-demand, will become substantial. Make-your-own books have been creeping into public consciousness for a couple of years: Apple has made it easy to produce one-off picture books and author-services sites like lulu.com have enabled author-generated books for some time. Travel book publishers have played with the concept. What is new is that technologies like SharedBook are moving make-your-own and assemble-your-own into consumer areas like food and sports. So far, this is outside the mainstream of the book business, but consumers will buy enough of these to create interest among publishers and online booksellers.

I agree with this. I give a customized book created using Blurb as a gift and it got everyones attention at the holiday party.

7. Apple, seeing the growth in use of Kindle and Sony Reader, will move to turn the iPhone and iPod into e-book readers. But they will recognize that the problems of loading in content and merchandising books are far more complicated and challenging than doing the same for music. They will solve the problem by teaming up with Ingram’s Lightning Source (for content) and BN.com (for merchandising and to reach the book-buying audience). This combination will enable Apple to challenge the Sony/Borders combination and the Kindle, though Amazon’s device still promises to take significant market share away from print and other e-book formats over time.

Can Apple make eBook/eReaders work? Maybe. The iPhone and the announcement of the MacBook Air shows that they can make ultrathin and ultraportable devices. On the content side, Apple has found that selling movies is not as easy as selling music - there are more contractual strings attached. And how will the recording industry withholding of distribution contracts with Apple effect Apple's media distribution strategy? If Apple develops an eBook device, Steve Jobs will want full control over the technology and the content network (like he did with the iPhone). Is the publishing industry willing to provide this?