Derek, you seem to have an issue with people using libraries. Why is that? Why is it a problem that people want to borrow books in ebook format? After all, it's just like borrowing pbooks, cds, dvds, or any other material that a library offers. IMO it's just a matter of time before more libraries get ebooks. I think it will take a little more time than audiobooks because of the additional (computing) infrastructure required, but it's beneficial to libraries in the longer term because it requires less counter staff and books don't get damaged, go missing, or get returned late.
I regularly borrow both ebooks and pbooks from my local library, and having access to ebooks means I can continue to borrow books when I am away from home or unable to get to the library.
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