They mention the fine based on when the book was checked out would be over $800, but under current rules would be capped at price of acquisition of the book or $1.50.
Blockbuster used to make all of their profits from late fees. Public libraries have a purpose of encouraging reading.
I'm all in for encourage reading. Not so much for encouraging stealing of public property.
It's the Tragedy of the commons. And IFAIK there's no way to solve it without charging for everything.
Modern libraries would need to include the prep cost in the acquisition cost though, which puts it above retail. Libraries often pay to have new books pre-catalogued, barcoded, and covered.