I completely agree with you, Doug. But many (most?) librarians don't see it.

For example, I had a chance to work with the Ames (IA) Public Library staff about a year ago, who informed me that a) business had never been better (i.e., more visitors and more lending than ever before), and b) only a few people in the community were affluent enough to be able to buy books and videos (and the expensive devices necessary to use them) instead of loaning/renting them. They're planning a multimillion dollar physical expansion of the building to accommodate greater traffic. I tried valiantly to discuss larger, long-term trends with them (because in the end you and I are right, of course!) but they weren't interested.

I think the challenge is to somehow crack librarians' mentality (like universities' recent admissions booms) that short-term successes don't mitigate longer-term realities and the need to adjust for shifted environments...

The availability of eBooks will eventually kill off libraries, IF libraries allow themselves to ONLY be a collection of books. Any decent library has much more to offer its users than just books. We offer instruction, guidance, assistance, equipment, and spaces for people to get things done. If we continue to waste our time bemoaning the fact that people will eventually be able to get their books without us, we are missing the point. Good libraries will evolve, like we always have. Bad libraries will fade away. The question is, what traits of libraries will continue to be relevant? Shelf upon shelf of dusty print books ain't gonna be one of them, I'd wager. The libraries that are more than just books will continue to be vibrant centers of their communities.

I think that you will find this blog It's Not About the Books from Australia very pertinent, and perhaps inspiring!?

Students in my LA class are reading books off of their iphones. Once one student asked if he could read from his iphone the idea became quite contageous. Amazing to see!