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The only way that this could possibly work out would be if HC offered deep discounts on their titles with further bundling pricedrops on multiple copies and "renewals".
But even then, if a book is going to be checked out often, it's probably not worth it to the libraries compared to books from more reasonable publishers.
And I wouldn't bet on this pushing up HC's consumer e-books sale via library unavailability, like their marketing department seems to think it would.
People who are already inclined to buy HC's e-books individually will still do so; people who want to read a library edition first will turn to paper (assuming no physical vision/mobility issues); people who aren't inclined to purchase still won't, only they'll read some other publisher's e-books first and maybe enjoy them enough to garner new sales for any series titles that the library doesn't have.
Frankly, if I were a librarian in charge of new e-acquisitions, I'd go "WTF?! Screw this, we're getting in extra copies of the Random House bestsellers from now on!"
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