This is as far away from "giving away infinite copies to anyone" as it could be.
If your whole defense hinges on "borrowing books has to have an inherent delay of X hours/days/weeks before they can be given out again", that's a very weak point in today's day and age. It's like saying "sending mails is bad because it is nearly instantaneous, and you don't have to wait for the postman to deliver your letter".
On second thought, I don't think the demographic of "people buying (your) books" and "people borrowing (your) books from a library" have that much overlap.
People who borrow books from a library are usually people who either don't want to (or can't) buy all the books they like to read. In that case they are unlikely to buy the book anyway even if they can't find it in the library... OTOH people who love your books or your writings, or people who saw a review and think "I'd like to read that book" will buy it anyway and not read a scanned version of it on their small phone screen.
I mean I understand why authors would love it if libraries didn't exist and everyone had to buy the book to read it, I would probably be in the same boat if I were an author. But the calculation "1 borrowed book = 1 lost sale" is flawed the same way that software companies' "1 warez download = 1 lost sale" is flawed
The lawsuit was filed when IA decided on it's own to increase the lending limit to 10000 copies of each title.
If your only determining factor for writing a book is to make and profit off of 'valuable intangibles', then I get the ick, just personally for me.
I'm not arguing for more starving artists, I'm arguing art and capitalism don't mix (see AI for further validation of that position).
You'll get way more ghost-written biographies from celebrities and hot takes from politicians.
A lot of people start writing books despite knowing those odds and outcomes.
Plus there are plenty of people who do it for the art even if they get paid, but the payment makes themselves better off and allows them to continue their work.
Like capitalism allows many authors to be able to create their intended art and find an audience, with both artistry and the desire to make money. And it's not like writing a book is easy, so the money is also extra motivation.