This is <i>huge</i> for Amazon, because it eliminates the one competitive advantage the Nook (and others to a lesser extent) had over the Kindle -- compatibility with libraries.<p>As far as the potential for format fragmentation goes, it's still the wild west as far as the relationship between libraries, publishers and e-books go.
We have this wonderful technology called "computers". It allows us to replicate information with a marginal cost approaching zero, and yet we continue to handicap its potential so that it could resemble the printing press of the 16th century.
This is really awesome. I realize there will be limitations with the borrowing (despite the fact that they are digital books, there will be a limited number of "copies" available to be distributed at a given time), but that's totally understandable.
I do hope, however, that you don't have to actually be at the library to download the books, that it can be done remotely.<p>If they throw a full functioning OS, like Android, on the next Kindle, keeping it at it's current size, I'm all there.
Massively awesome.<p>I need to start showing up at my local library meetings.<p>edit:<p>For the purpose of working to bring e-books to our local library system.