Definitely a stronger position than years past--as are authors overall. Some contracts are getting better in the trad world because the publishers know that authors have a choice. I'm fairly certain that I've made more money going indie than I would have going trad, but some of that is timing and luck.
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I don't think libraries should be forced to carry all books, or that Overdrive should be either.
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No one is forcing overdrive to carry the books--in fact they get paid if the books sell and they take a hefty cut--larger than most retailers. No one forces libraries to buy ANY book so having them in the mix shouldn't be a burden on the taxpayer or the librarian. That's the point. The libraries are free to pick and choose just like they always were, but segregating them...well, that really only benefits the publishers and to some extent overdrive (The publishers charge libraries a very hefty price to carry ebooks--usually much higher than list price.) If librarians choose more expensive books, overdrive gets a larger amount of money than it will for indies with books at 5 dollars or less.
If I uploaded to overdrive myself (which I understand I could probably do because I have more than 10 books, but I have to write to overdrive, explain the number and then petition them with a list of how many I expect to publish each year, etc.) I could price my books differently. I don't know what my cut would be. But ultimately we don't put our books in libraries to make money--we do it to be read, to be noticed/discovered.
And to some extent getting in at all is "getting the foot in the door." Some libraries might buy our books. Would more buy them if we weren't shunted off to a special area? Probably. It's possible no libraries will buy us at all as the situation currently stands.
We'll see where it goes.