I may have some trouble asking this question. I understand that the laws of kavod seforim (respecting holy texts; i.e., not bringing a book of Torah into the bathroom) do not apply to tapes, etc. (Source: http://www.theyeshivaworld.com/weekly_torah.php?id=250). Presumably, they would also not apply to a phone that has Torah apps or downloads.
But why? And where is that line drawn? For example, if I had Torah on an e-ink reader, could that be in the bathroom if it were on? (/off?) In what respects is the distinction today drawn between virtual and physical?
(For official answers, please bring sources!)