I also hope that libraries do not give in and take this deal. It could set a bad precedent that could effect all libraries and other publishers down the road.
The terms are just ridiculous. Libraries aren't rolling in money to be able to afford these high-priced terms for ebooks. Compare that policy to if they purchased the hardcover book. They pay one price and they have it forever to loan out to as many people that want to read it... no limits, no one comes into the library after 2 years to remove the books, it's there to stay.
It's not a case of being a tough crowd. I don't want to see any of my public libraries close down because they run out of money on silly pricing like this and are forced into cutbacks. It's a case of greedy publishers trying to squeeze more money any way they can. Trying to get it from libraries just offends me.