Supermom, I'm in a Masters of Library Science program right now at San Jose State, so you can imagine this subject has come up once or twice. Libraries are not asking publishers to make the ebooks free. They are asking them not to raise the price of the licensing so astronomically high that libraries can't afford them. The publisher want to charge libraries many times more for e-books than for paper books. I don't have the figures in front of me, but if you are interested I will get them. Once you see the difference in cost, I think you'll understand why this seems like publishers trying to take advantage of libraries. So, when libraries started going public about this issue, publishers began refusing to give them the licenses at all. It seems to me to be a form of blackmail. Publishers know that libraries have patrons that want these ebooks, so they are trying to force them to pay unfair prices.
Supermom - I think you are reading too far into this (sorry pun not intended). I don't believe library patrons are petitioning for free ebooks to steal or rip off from publishers. Instead it seems they want publishers to sell books in multiple formats e.g. paperback vs. hard cover vs. Kindle or PDF etc so they can choose how to read it.
I agree books, ebooks or audiobooks should NOT be copied to one's personal collection. Amazon, Apple, B&N and other sellers have added ways to prevent you from sharing or copying licensed works. Sure there may be ways around it for those lacking a moral compass but hopefully they meet the consequences at some point. Libraries I agree should also add encryption and a timebomb when the library user must check the material back in. For audiobooks and possibly some ebooks this may already be in place.
That's exactly how it works, eVader. When you borrow an e-book, you get it for two or three weeks. When the time elapses, you are no longer able to access it on your e-reader. For anyone interested, both the Folsom and Sacramento libraries offer e-books. Give 'em a try!