Copyright law is broken in the US, but that doesn't mean that Internet Archive was going to legally get away with what they were doing and escape legal trouble, even if it arguably wasn't morally wrong.
What are you referencing as not following? I'm not in discordance that CDL was likely illegal, simply in how they were making and sharing unauthorized electronic reproductions. At that point, it doesn't even matter how many people they allowed to borrow at one time. My comment on morality was in reference to how some people may argue that the internet archive was not in the moral wrong, but the law isn't based on any one moral code, so this doesn't really matter to the legal question.
Ah sorry, I was referring to the comment about US copyright laws. I assumed you were implying that the US system was uniquely bad/broken/worse but on re reading it, that's just me badly interpreting what you said. Sorry about that!