My library in East Tennessee is Tennessee wide for e books and has several thousand books available to check out including 192 fantasy titles (which are my favorite). They allow 15 titles to be checked out at a time for 14 days. One can also place a hold and when an ebook becomes available they e-mail me. It is very handy. I suppose that anyone who checks out that many books would have to be an awfully fast reader. Ha. I've had been checking out and reading titles for a long time on my computer before the Sony Reader was bought but it hurt my eyes.
My transfer to the PRS 505 was also very painless and greatly enlarged my horizons. I have been checking out the NYC public library and if I remember correctly they had around 12,000 some odd books available? It does seem like a huge bargain for only $100. How many books do they check out and can they hold books for the next reader?
I've come to the conclusion that the supply of ebooks is mainly because of the publishers holding them back and using the ones they release as primarily teasers unless it is an "old" book or early writer like Andre Norton or C. J. Cherryh both of whom I enjoy greatly.