There is a long posting on the O'Reilly Radar site bringing together some of Tim O'Reilly's thoughts on Google and the publishers. It is interesting to remember that Tim O'Reilly is a publisher while reading it.
Publishers have been stalling for years in getting their content online. Now someone may have a model that will take us in new directions, and they want to stop it till they can figure out how they will be the ones to profit from it. [O'Reilly Radar > Google Library vs. Publishers]It is nice to see WorldCat get a mention in the comments.