I'm still planning the next phase of my Great Google Books Discussion (the good, the bad and the ugly) but in the meantime, the NYTimes today has an article by Katie Hafner about some of the libraries who are choosing different routes. Most notable among the non-Google/non-Microsoft options is the Open Content Alliance, which recently agreed to work with the Boston Library Consortium and its 19 libraries in digitizing copyright-expired volumes from their collections.
Michael Lieberman weighs in here.
I say the more the merrier, and the more cooperative, comprehensive, unrestrictive and well-executed the better.