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Make the Old Lady Hobble Downtown
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At this point, I wanted to yell out "Cite, please!"
Yes, there has been talk of this, but LeGuin gives the false impression it actually is implemented. If and when it is, I'm sure there will be an exception for people who have trouble walking.
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. . . how come print publishers didn't refuse to sell books to libraries?
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The question cannot arise because anyone, including the government, can legally buy paper books.
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more than half reported that they bought book by an author who book they'd read in the library
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For the sake of libraries, I wish this was commonly true. But the question is worded so that if you vaguely recall buying one book twenty years ago, that's a yes.
Personally, there are two authors I can think of whose other book or books I bought after library reading -- Alex Dryden and Nury Vittachi. In both cases, it was because the authors wrote books only published outside the US, and thus almost impossible to get through libraries. I don't think this, or other rare situations, are going to give publishers the warm fuzzies.
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reactionary ideology has weakened the idea of community
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I'd say that claiming peaceable people you disagree with have a reactionary ideology has weakened the idea of community.
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They are keeping books from us.
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Us here being the more affluent part of the reading public that uses eReaders.
I'd love for Simon and Schuster to start selling their products, to libraries, via Overdrive. I hope they find a good business justification for it. But until then, there still is paper book borrowing. This is not now, or in the near future, a great moral issue.