Anything that improves the literacy of anyone should never - ever - be downgraded.
Not being able to borrow books from other libraries that are unavailable at one's own library is not unlike book burning. - he overall effect on knowledge, education and literacy is no different.
When books become unavailable through libraries, families must find the means to buy books which, as we all know, are not cheap - even when used. If we truly want the next generations to be less knowledgeable, the absence or reduction of the inter-library loan service is a good way to achieve that goal.
I don't think that's what we want - does anyone?
Inter-library loan is Bob bitchin ...