That's why archive.org should have never been sued for lending books they had physical copy of. This is the result. Publishers should be more careful what they wish for.
Publishers don't care if rare books get shredded?
Publishers had accepted the prior arrangement before The Archive decided to push it, if not explicitly then implicitly by not suing.
I'm a believer in The Archive's mission, and I wish they had treated the goodwill they'd accumulated as something worth preserving and not a currency to be spent.
It has been stated by many before me: lending books should have been handled by a separate entity, especially when they removed the physical backing requirement.