I've been saying this for years, this was an incredibly boneheaded move by the Internet Archive and they just keep on doubling down on it. They shouldn't have done it in the first place. When they got sued, they should have immediately admitted they screwed up and settled - the publishers would probably have been fine with a token punishment and a promise to shut down their ebook library, it's not like IA cost them anything significant. But they just keep on fighting, and it's only making things worse.
This isn't even IA's purpose in the first place! They archive the Internet. They're like a guy who's caring for a precious baby who decides he should go poke a bear with a stick, and when the bear didn't respond at first he whacked it over the nose with the stick instead. Now the bear's got his leg and he's screaming "oh no, protect my baby!" And it's entirely his fault the baby's in danger.