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I don't really like putting on my cynical hat, but despite the final paragraph I still feel a good chunk of the preference for physical books and libraries comes down to being performative. I'm not doubting if the books are being read, but if you're putting yourself forward on TikTok having read a book, having a physical copy lets you flout it – something you can't do well with an e-reader.
Do I expect certain celebs to go out with certain books to tacitly promote them, even if it's just because they think they the book is good? Sure. Does it give their fanbase something to bond over? Yeah, and that can be nice.