I do not know how you would end up with that impression, because for each person who downloads a copy, the IA has made a copy. Regarding the removal of books,

I do not know how you would end up with that impression, because for each person who downloads a copy, the IA has made a copy. Regarding the removal of books, if they were licensed to the IA in a way that allows for 'digital lending', and the IA then violates that license agreement, then the IA no longer has the license and cannot anymore do 'digital lending'. And if they weren't licensed to the IA in such a way, then they're making and distributing copies without a license to do so, which is copyright infringement.