I think it's terrible that the Internet Archive is very likely destroyed, or at best, we have to donate a large sum of money to pay off Hachette.
But I think it was reckless to engage in uncontrolled ebook lending. Controlled lending (one copy lent for one copy on the shelf) is not a legal right (in the US), but it's got a much better chance of avoiding a lawsuit.
Uncontrolled lending was foolish. It was inviting a lawsuit, and it has far less chance of popular support than the intuitively more reasonable model of controlled lending.
I agree with the sentiment behind the NEL program: it's a lovely gesture. But to invite destruction of the Archive like that was a terrible mistake, in my view.