With libraries usually the first one's being squeezed when the town/city/township's budgets need crunching, and given how long it usually takes for them to get the funding to upgrade their technology, this new policy is going to be a killer for ebook lending, IMO.
Though I suppose we have to give some thanks to these short-sighted and greedy publishers - their actions will keep physical libraries in business instead of switching the emphasis over to electronic lending. Good for illustrators, too, I suppose.