The specific development this post references is a proposed injunction [1] that Internet Archive and the publishers agreed on and sent to the judge. With certain exceptions (such as accessibility and fair use), IA would have to remove from its lending program any books that are commercially available from the publishers. IA wants "commercially available in electronic text format" and the publishers want "commercially available in any format", they've asked the judge to settle that point. IA reserves the right to appeal the judgement.
[1] https://www.courtlistener.com/docket/17211300/214/1/hachette...