Google had a tailored fair use argument because they never made more than snippets public and searchable. It was also prior to Hachette that controlled lending with one-to-one digital copies for every physical copy was a status quo that publishers largely accepted, which IA deliberately tried to upset with the National "Emergency" Library.

I think it's worth fighting back on copyright as a broken institution, and it should be part of the IA's mission, but you have to be responsible on your approach if you're also going to posture as an archival library with stability of information and access. I understand Kahle might lament losing some of the hacker ethos, but the IA is too important to run up against extremes like this without an existential threat.