Holy cow, Thing 20 is long!
I read the amazon article about loaning out Kindles. First of all, I think in our library this would be bad news. Most people have a hard time returning a book or Playaway undamaged...I can't imagine what would happen if a Kindle were broken or just went "missing". It's too expensive to loan out in my opinion. With sites like Booksinmyphone.com, you can still appeal to the public and those who can't afford a Kindle. The only problem I found with Booksinmyphone.com is that it doesn't have every book. I typed in several titles and got no results. However, it does have a lot of the classics like "20,000 Leagues under the sea" and "Journey to the Center of the Earth".
I'm intrested to try this out and see how it comes up on my phone. It looks like it uses an external memory disc and once inserted into your computer, stores the book on the card and then you just insert the card into your phone. Fairly simple as long as your phone is up to date with the latest technology.If not it will use up internet air time trying to download which could cost a pretty penny.
In our library, we have a database that patrons can use called Tumblebooks. It reads books to children and has simple tests and games for them to complete after reading it. It seems to be very effective and has a good number of books to choose from, including chapter books for older children.