No, wait, they want to have their cake and eat it too: "Publishers are nervous that e-book borrowing in libraries will cannibalize e-book retail sales." Well. OK. Let's all make sure we don't let anyone BESIDES publishers fuck traditional bookstores... 'cause that'd be bad. Somehow.
What I don't see is HOW this is any different to the traditional model for libraries? Sure, an eBook doesn't wear out, but well treated, a hardcover won't either. People who are low commitment will borrow, and might then buy. Otherwise those people are never going to access your material at all.
And once again, they trot out the old "Won't somebody PLEASE think of the CONTENT CREATORS!" handwringing cliche, in this case "in the end lead to a decrease in book sales and royalties paid to authors.” which, as we know, is bullshit.
And now I'm wondering why I bothered writing this because it's not news, it's not surprising, it's just another installment of Traditional Publishing VS The Horrid Internet... OF DOOM.