Stealing Your Library: The OCLC Powergrab
aaronsw.com
aaronsw.com
You are right, replacing one monopoly with another is one way to end the story. What is wrong with an open alternative?
http://oregonstate.edu/~reeset/blog/archives/582
one of your main issues has been addressed. As for the other, it's true that the OCLC shouldn't view itself as a for-profit entity that needs lock-in to survive when all of its member organizations are non-profits for good reason.
That all being said, I think WorldCat is a great product, and when you consider that most libraries use SirsiDynix or some other horrible on-line catalog, it's not too surprising that the people at OCLC don't trust libraries to make good IT decisions for themselves.
As far as your own product (Open Library) goes, I think it looks nice, but I guess I don't understand the benefits very well.