While short term, this sucks, I also think that in the way that eBooks work these days, this ruling is actually fair and it might well fix the situation for us consumers in the mid- to longer term. For all intents and purposes, eBooks are services. Between DRM, vendor lock-in and other consumer hostile "features" of ebooks, seeing them as services and consequently taxing them as services totally makes sense. As an eb…
Goods are a thing you own, can use for whatever purpose you want and can sell on after you've bought it.
This way of looking at things present new questions: Should phones on a contract be regarded as services too?