I don't see much of a difference functionally between reading off paper books and reading off an iPad. We do both here. Classics, which are available for free, are usually read from an iPad. That saves purchasing clutter and killing trees to make the paper. We don't have access to a library or bookstore, so eBooks are a simple and relatively inexpensive way for us to get to new literature.
I still read to my kids. The eldest has moved away, and my 16yo ds just isn't that interested anymore. But my 14yo and 9yo dd's, and my older kids when they were those ages, we still had a family culture of readalouds most days. During holidays all six of us often share in reading aloud from a book -- on long drives, or holed up in a tent or motel room, curled up around the fire during power failures. Even dh and I have been known to read aloud to each other on long drives. I think there's something really special about simultaneously and actively sharing the same literature. I don't think listening to audiobooks serves quite the same function: the pauses, questions, discussions, tangents and so on just can't happen as naturally and easily. There isn't the "giving" element of one person reading to others. Also, it's too easy for one person to miss bits. When it involves someone pressing pause on a device the tendency is to just leave things running when someone goes off to pee, or to make tea, or to grab a sweatshirt, or while asking a question or holding a quick conversation about something else, and then before you know it the story is running on and on and one or more family members are missing entire chapters, assuming they'll catch up later. For us at least, a recorded voice is less precious than someone's reading aloud in real time, and it's easier to lose interest, wander off or whatever. And as a parent it's very tempting to simply not share in the listening at all, to use the audiobook as a sort of babysitter, a way of keeping the kids busy and out of trouble while doing something else. Which is a very useful function, but it's not, to my mind, the same as reading aloud to and with my family.
I totally understand the reluctance to read Magic Tree House and similar books aloud. I always told my kids that formulaic fiction is designed for kids to practice and improve their own reading, and that those books are for when they want to read to themselves. If they couldn't read at that level yet, I just told them that they had them to look forward to when they were independent readers, and I didn't want to spoil that treat. There are so many books: I do think that as a member of the family and the one doing the majority of the reading aloud, I have a right to input when it comes to choosing books, since there are always tons out there that all of us, not only the kids, will enjoy. We choose collaboratively most of the time, though sometimes we'll take each others' advice. "I think this is one you'll really enjoy once you get into it" is a valid reason to push someone into a choice they might not be naturally enthusiastic about at the outset, but that argument can't reasonably be made to me about Magic Tree House #26 for example.
I love the story-telling tradition! We tend to play story-telling games in the minivan when commuting to activities and I think it's a wonderful way to nurture and enjoy learning about how stories are put together. When my kids were younger they put together entire mythologies from imaginary worlds that grew out of their stories. We all treasure their old imaginative creations and speak with great affection about the characters that populated the stories of their young childhoods.
So ... I think reading aloud, and listening to audiobooks and making up and sharing one's own stories are all valuable things to do on a regular basis. While the proportions allocated to each may swing towards one or another at various ages and stages, I think it would be a shame if reading aloud as a family and got shuffled away onto the back burner for too long.