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I would expect that libraries will have to buy additional licenses for the Amazon format. Before EPUBs became the dominant format, my library used to have both PDFs and mobi versions of books. It's really no different than having MP3 and WMA formats of audiobooks. I don't think the EPUB format will die at libraries because of international demand as pointed out previously and also because there are so many brands of ereaders that use EPUB's. I borrow library books for use on my Sony and my B&N Nook Color. What is likely to happen is that libraries may split the number of licenses that they purchase for a particular book between EPUB and Amazon formats, which would result in longer wait-times for a best-selling book in EPUB format.
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