For me, when I get books I often get the cheaper paperback option, give it a read.
Then if I really liked this book, I'll donate it to a charity shop or in my social circle and purchase the hardcover version.
The only gripe I have with hardcover though is some books come with that sleeve cover around it, you know the one, bit fidgety to use when reading.
Paperback I like if there's a book I am mildly interested in and I'll just go "whatever" I'll keep it as part a collection.
Paperbacks = cheap as chips but aren't as protected as hardcover, easy to fill up your collection or shelf with, might sell it if i want the luxurious version of that book. this is for me.
Hardcover = More luxurious as it provides proper protection to the pages and outer area of the book, Often comes with items as part of a collectors set. Usually I get the same book if I really enjoy it to add as a gem of my shelf.
What are your tastes? Same as me or do you lean more heavily to one or the other?
Paperback. I've sometimes waited for paperback versions of books after their initial hardcover release. Cheaper, lighter, same reading, I used to be less patient so would suck it up and get the hardcover, nowadays I don't read as much so waiting is easier. I read a lot when traveling and hardcovers are just such a pain. The only "nice" collection I have is LOTR+hobbit.
I'm trying out an eReader soon but I'm not sure I'll be able to get away from the desire of physically turning pages.