Your first guess was spot on, The Library uses Adobe DRM. I was messing around with an Kobo aura hd and it seemed to work fine
I was thinking of everyone having an individual library login and adobe ID account. They'll be buying them themselves and the internet disabled using the parental controls.
I was looking thinking about the Kobo nia maybe.
Also the audiobooks can be dragged and dropped from PC to a cheap (25 euro) mp3 player that is already available to them, I tested an audiobooks and it worked fine.
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