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I've volunteered in libraries over the years and even cheap paperbacks are checked out more than 26 times before disintegrating. I also spent a lot of time patching up books so they could go back in circulation. Considering the price a library pays to Overdrive for one ebook license limiting it to 26 times is ridiculous. 260 times is more equitable. I can see HC's point about ebooks not wearing out but 26 loans is too few.
BTW, the school libraries where I live have not received any funds from the county budget for new books in several years. The public library system has had its budget radically slashed and almost all new acquisitions come from donations and fund raisers.
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