It sucks that DRM has been more or less proven to be self-defeating unless your actually delivering unique digital goods (like say your exact bank statement, securely). When you're trying to deliver the same goods to the public (lend a book), but the attacker (person who is late with the book, or just wants to keep it) is digitally non-unique from the good participant, at least as far as the content is concerned, then you ultimately give up the goods to everyone (the key file for reading the book). You have to look at the last 30+ years of HBO to see that, or the last 6 years of gaming to see that (notice WOW is a unique digital product, your WOW character).... so I hate to see libraries wrapped up in all of this. I would think the safest bet would be to promote DRM-free and otherwise open or public domain works as the only real artifacts that will have any chance of surviving digitally.
Also, a good fight for libraries to be in would be to solve the out-of-print fiasco. Sorry to be political, for the day-to-day stuff of all of this, it is a great opportunity, it's just the end-game is bleak and we've already been there too many times for me not to at least bring this up.
I think publishers see DRM as a way they can work with libraries to deliver digital content and also protect their bottom line. It's not ideal, but personally I don't see publishers giving up on it. And while it's true that libraries have some leverage with publishers, we don't have so much that we can force their hand. The relationship is made even more complicated by the fact that publishers don't always act in unison. Some are willing partners, and some seem more resistant. The last I heard, Macmillan and Simon & Schuster weren't offering any of their ebooks to libraries.
In a related story, there was a huge outcry from the library community when Harper Collins announced a limit of 26 checkouts per ebook earlier this year. The publisher's reasoning was that the wear and tear on books borrowed from the library meant that libraries had to regularly replace worn out copies. Obviously this revenue stream dries up in the world of digital content. Harper Collins' "solution" was to require libraries to purchase additional digital copies of titles after 26 check outs.
I think this is why I get so excited when I hear comments from people like cbus11 and jarsloth. I know what a challenge this has been. The current system most libraries are using (OverDrive Digital Downloads) is equal parts collaboration and compromise. It was worked out by librarians, publishers, software developers, vendors, and lawyers, It's probably not the service model the librarians would have picked, but it's the one we've got. Despite a few hiccups (and maybe a few extra clicks), it seems to be working.