I hope that the compensation going back to the authors and publishers is updated to reflect this new reality. With this model going out to the 8500+ Overdrive supplied libraries it's going to be easier to borrow a well formatted electronic book then to buy it.
I'm fine with it if the compensation going back to the authors and publishers is the same when the book is borrowed as when it was purchased. The difference being that the tax payer is picking up the tab. As long as the tax payers are willing to fund it everything is fine. My understanding right now is that the compensation going back is more of a symbolic pittance.
Most of the members of my family will be thrilled with this news though. I'm the black sheep that continues to buy books.