Should libraries have ebooks?

There's an interesting debate on "eReport: Digital Publishing Downunder" about whether or not New Zealand libraries should be stocking ebooks. Does this new technology cut into an author's royalties? Why should taxpayers be subsidizing a personal habit? Aren't there plenty of commercial alternatives to libraries?

Those of us who are older than dirt know that these arguments have been trotted out every time ANY new item was introduced to libraries. I'll bet Gutenberg had this argument when the first Bible rolled off his press. OK, maybe the author wasn't worried about royalties, but still...