The magic of libraries was discovering a new section of the dewey decimal system, figuring out that other books you liked might be next to the book you looked up in the card catalog, and escaping to worlds you could never see if not for your imagination and the printed word. Now you just google it, find pictures, read everything about it on the wikis, look at a live cam or webcam of the place, use google earth to wander around, read about all the negative things about the hero you just discovered etc. It's not that the libraries aren't there - it's that the lack of other things made them magical.
Plus..and this is true in Hawaii but not positive about other libraries - when I was a kid there weren't homeless people spending all day sleeping in the library and occupying all the available seats. The main people in the libraries around us are homeless using the internet, homeless using the air conditioning, and homeless using the bathrooms. I'm not going to send my kid to hang out in the library for hours without supervision.