From the article:
The Corvallis, Ore.-based university has found it too expensive to fill its Valley Library shelves with fiction and nonfiction books that students would read for fun, not homework assignments or upcoming exams. So in November, the university began lending Kindle eReaders to students and faculty willing to part from traditional page flipping and embrace a technology being tested on campuses nationwide.
The immediate demand for the electronic books forced Valley Library officials to alter Kindle policies created by a campus task force last summer.
Because the library sign-up sheet now includes 189 students and faculty members waiting for their turn to use the Kindle, officials shortened the borrowing period from three weeks to two, and they bought 12 more Kindles in February to add to the original stock of six eReaders.
I find it rather interesting (but not surprising) that the university library bought the Kindles so the students could read fiction. See, Amazon tries to promote the Kindle as a digital textbook. It doesn't work well as a digital textbook, though. If it did, this article would have an entirely different focus.