Will Libraries Survive Digital Books, and If So, How?

Public libraries serve a number of purposes; a warm place to spend the day, a source of free internet access and community event locations among others, but their primary function is a free source of books for the public. The United States has long supported this service as valuable for educational purposes, allowing anyone, regardless of socio-economic status, to lift themselves by their educational boot-straps. Digital distribution of information, at least in its current form, presents a threat to these institutions. The internet has replaced enough of the functionality of lending libraries to threaten to render them obsolete, but not enough to make the change one that is net-beneficial. The question considered here is: what library-side changes can help avoid the loss of this valuable resource?

What libraries have now, and what the internet replaces.

-Physical assets: community space, quiet public environment, non-lending research materials (reference material)

-Non-fiction/research assets: non-lending research materials (reference material, micro-fiche, other that varies from library to library), non-fiction lending material, current periodicals

-Fiction assets: (Free) Fiction books, video (DVD and VHS in most libraries), music (generally all available for lending)

Internet replaces: Research materials, periodicals. Fiction resources at a price.

Doesn't necessarily go away: Physical space, non-lending research materials.

What is lost: Free fiction (and non-fiction lending) books, free or highly discounted video/music, efficient funding for community center.

Why the whole library system will be replaced/eliminated by the internet. Market forces: no one borrows books, no late fees, no pressure to fund libraries (why not use the money for trash collection, or discounted internet service). Only a problem because the internet is restricted (back to what is lost point)

Possible Solutions. Free fiction digital distribution- Still fair use? Will industry stand for it? What restrictions? Fix the internet (question for some other paper)