It's always got to be paperback for me. I like to be able to stick a book in my bag and for it not to take up too much space and also I tend to loose the dust covers of hardbacks so most of my (many) bookshelves looks quite plain.
However if I like a book I'll hunt it down at a secondhand shop in hardback just to have as a back up.
And of course I tend to turn into a dizzy child when a new book by one of my favourite authors comes out so I'll grab it in hardback.
However my main reason is you cannot, comfortably, crack the spine of a hardback and curl up in bed with it.
W