We’re seeing $0.99 “books” because that’s what a limited-use file from an unknown or relatively unknown author is worth. “Books” from real publishers have a higher minimum value, because there is an effective guarantee of a minimum level of readability, but they’re still not worth anywhere close to what a book you buy is worth. You are not getting the same rights. And in the long run, if publishers want to collect equivalent dollar amounts for limited use files, they are, as you note, going to to a whole lot of active management for “books” whose sales have dropped off as they age.

The technological aspects of lending an ebook are already solved, for the publishers who will let libraries lend them and/or allow B&N and Amazon to enable the Lend feature on their titles. Giving away or selling an ebook without the individual retaining a copy is a problem that I don’t believe has been solved yet, but publishers would be far better served to be looking for that solution rather than trying to treat a book like the latest release of Microsoft Word.