I think in the past and certainly currently it is more the marketing (if it's even done) and distribution that the publishers do. The copy-editing is often farmed-out to the same copy-editors that authors can (and should) hire themselves. The old-time editing such as took place for Hemingway, Raymond Carver, and others doesn't happen these days (from what I know). Marketing and distribution channels are still pretty much in control of (under the thumb of) the big publishing houses. Ebooks and channels are getting there via Amazon and others, but there's still a way to go.
I'm unsure about this library thing -- it might be great for local publication/exposure but it certainly wouldn't have exposure someone like Amazon has.
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