I also hated that stunt. It undermined their mission, damaged all their goodwill and caused legal hassle. And all the while all these books were readily available to anyone who wanted them via Anna's etc.
They should have stayed on the right side of that line.
The COVID library wasn't even the first time they had book lending on the Archive. I remember at least a couple of different prior borrowing mechanisms. But besides books, JS/WASM emulators were added a long time ago to run game console ROMs directly in the browser on any collection that happens to contain them. There's probably other examples, but nothing else comes to mind right now.