That's actually a pretty great insight. If you think of the library as a potential piracy haven, you might even consider going as far as calling them a storefront of The Pirate Bay if libraries were invented today.
That's expensive only because no one actually uses the online lending service, since rich/tech people value convenience, and the people for whom a $9.99 ebook is a big enough expense to warrant the inferior search, wait, etc. are probably not technology early adopters (or can't afford a $79 Kindle).
It might make sense in a school library environment, though. Or, with sufficient assistance in setting it up, audiobooks for the reading-impaired (a helpful librarian, or an audio-only UI to search/download books).