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Without libraries, children would not be aware of his books and thus ask their parents to buy said books for them.
I know I've spent thousands on books for my daughter over the years, many of which she first discovered in the school library. I know my parents could never have afforded my reading habit when I was young. I used to go to the public library after I got home from school and get out six books at a time (all my parents allowed me to have). I'd usually finish at least two if not three by the time I went to bed, and two or three days later I'd be back to the library.
As for his thesis: over 150 years of coexistence proves libraries are not responsible for the decline in book sales.
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