I just attended a web conference session on ebook readers. I was hoping the session would address the problem of lending ebook content that the library already owns with the Kindle. For a quick summary of why Overdrive books don't work on the Kindle, read this.
For that reason, the session was more concerned with describing the wide variety of ebook readers available and encouraging libraries to try lending the readers themselves. My initial reaction was that this was kind of crazy AND probably crazy expensive to implement. Besides, aren't libraries about content, not devices? Of course, then I thought about how every branch provides public computer stations, because the real point of the library is facilitating access to information. Plus, the accessibility of ebook readers is phenonemal, since they are much more flexible than a printed book. Text size can be changed for readers who have vision problems and some ebook readers even have a text to voice feature that makes a book accessible to the blind.
Logistically, a Kindle lending service would be tricky, but a few public libraries are already doing it. The patron is effectively borrowing a mini-library when they get an ebook reader since it can hold so many books. Would a library offer themed Kindles, like one with a collection of popular mysteries and another with romance novels? Or just put the entire NY Times Best Seller list on all of them?