Earlier quoted context omitted.
How was the CDL hurting working authors? A library bought the book, paying the publisher and the author. The IA scanned the book for digital lending, this digital copy could only be checked out by one person and only when the physical book was not also checked out. I understand the court decided this wasn't okay. That aside, how was it hurting working authors?
The ruling discusses this starting on page 33. The gist is that they set up a non-transformative service that is substantially equivalent to competing ebook services and CDLs, but unlike those it is not paying the customary price to publishers. It also discusses that there is a very good reason why digital libraries don't typically get to have perpetual rights to a work at the retail (or used) price for a print book.…
While physical books might indeed wear out, I think they wear out way slower than what current library e-book licenses might suggest (apparently two years or 26 lends seems to be popular in the US? – my library has tons of books older than two years, and back from when they used to stamp the return date in the back, quite a few books had hit 26 lends without falling apart yet).