Libraries serve alot of purposes, so I think they will remain relevant for awhile. But what you are saying is happening in our schools. Our local small Catholic school has formed a task force of teachers, tech staff, etc. to hopefully guide us into buying all textbooks instructional materials digitally and giving each student an Ipad/Kindle/whatever to use.  Long term it will be cheaper, by far, but picking the right path is not easy.

We run a very tight budget at school, it's scary to even buy a textbook anymore, how much longer will they be used?