Yeah the posture and discussion on that is basically "we don't even need to go into the NEL because CDL as a whole isn't fair use."
There are some limiting principles... the lower decision only covered books that were "in print" in eBook form... but the rationale here is quite broad and would easily stretch beyond these specifics. (There's a small amount of analysis related to whether the digitization involved in CDL is "transformative" that rests on official publisher eBooks being available, but there's a strong overall impression that the decision would come out the same way for things not already available digitally.)
So what I'm mad at is not that IA did CDL and imperilled thier other work -- it's that instead of doing CDL in a way most likely to result in a successful case if sued, they did it in a reckless not-C way that resulted in a bad case that ruined CDL, where maybe a better case with better facts would not have.
In a more reasonable world we could imagine Congress might pass a law authorizing actual one-copy-per CDL by non-profit libraries. But nobody's going to hold their breath for that.
Yes, the NEL period surely soured even more what was already going to be a hard case, and gave the publishers greater impetus to bring it, and blunted the negative PR they'd have gotten. I don't know that any CDL that was done on a significant enough scale to be worth the suit was ever going to survive, though.
I've thought since the beginning of this saga that a change in statute would pretty much be needed for CDL or something similar. The idea being to craft something that extends the philosophy or idea of libraries in the face of an increasingly digital world where doing much of anything requires a copy, things are licensed rather than sold, and the first sale doctrine has little application, but I agree with you that such an idea has dim prospects.
Also, I lazily assumed differently, because I'm used to appellate courts making it as easy as possible and narrow as possible and not making new law they didn't need to make. I expected since the NEL thing was so blatant and made the decision easier, they'd just make a decision about that. Isn't that how it usually used to work? New era I guess.
But looking at it, maybe this was the way the original suit was set up necessarily, and the lower court decision? OK.
> the lower decision only covered books that were "in print" in eBook form
This is actually a pretty significant limitation, because so much of what was practically available as CDL was actually out-of-print books that the publishers never bothered to make available for eBooks licensing. It's at least reasonable to expect that the fair-use analysis might tilt the other way for such books - the use is a bit more "transformative" because at least it technically contributes something that the publisher didn't, and the potential of market harm wrt. the copywritten work becomes a lot more speculative.
My hope is that doesn't mean you can still digitize media that's on a dying format and that can still be used in CDL. Like if you owned a legitimate copy of a movie on betamax that format has been dead for years you can't buy a new betamax player you can digitize that before the tape becomes unreadable. That's been explicitly in copyright law last I looked and it's just a matter of defining what media is "dying" enough to count under this.