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All but one of my "loan expired" books have now disappeared from the main "Books" list. The currently-checked-out books all show up.
And the book that still shows up I later bought. The Da Vinci Code, which was free for a day, hence why I bought it.
It won't let me send it to a device, though it does tell me my KT has it already. The cloud reader lets me read it. The old MYK doesn't list it as a loan.
I assume they will catch and fix that, though. It sounds like Books lists currently-accessible books that you are allowed to read.
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