This wasn't about preserving archives, or distributing old works that should have been in the public domain by now, or even "lending" out digital copies backed by physical copies they owned. This was about distributing unlimited digital copies of current works (some published just the year before). Legally and morally I cannot see this as any different or better than blatant copyright piracy.
The Internet Archive does a lot of good things, most clearly legal, others gray areas that I think should be legal. This stunt was different.