If it hurts your eyes, you're likely not using an e-ink display. It's a reflective surface, just as paper is. It shouldn't hurt your eyes any more than paper will.

Distractions? Not in any of my e-readers.

Digital annotations suck, I'll grant that. But then again, I like my physical books and would never put markings on them, so for me this isn't a disadvantage.

Browsing is much better for physical books, but heavy hard bound books are much a pain to hold while reading.

Pros and cons to both.