Seems to be that rather than pay taxes to buy content for the library, one can just contribute directly to that library.

Public libraries welcome donations of books. And as I mentioned in my parent comment, startups are trying to work within copyright law to allow people to upload their movies/music and loan it out to others with the caveat that the number of simultaneous consumers of the media cannot exceed the number of licensed copies. I'd like to see such services take off, though they face an uphill battle to prove that loaning format shifted media isn't a copyright violation.

The real uphill battle is convincing content creators and distributors to focus on new and interesting ways to persuade people to pay for content, rather than trying to mandate that everyone pay for the content and mandating punishment for those who don't and are caught.

Your example of the app store is actually good, and shows a good monetization path that actually benefits from the inherent properties of the digital medium. You're right that some people still try to pirate 99 cent apps, but in my experience those people aren't part of the audience in the first place, because they don't have the 99 cents to spend, or they wouldn't be wasting hours and days to save themselves a few dollars. The time of anyone with a job is significantly more valuable than that. While there are always going to be a few penny wise and pound foolish irrational actors in the mix, you can't cripple your business based on that kind of rabid obsession. You have to let it go at some point.

It's time to give up the archaic, draconian copyright regime that demands total control of a PC before it allows it to display a movie and reasonably embrace our digitized future, including building monetization models that aren't "sue filesharers".

Src: Eben Moglen