That's a relief to hear, it sounds like the Internet Archive realized just how badly they'd messed up and chose not to die on this hill after all. I hope the monetary settlement was instructive but not ruinous.
Leave the book piracy to Library Genesis, that's their specialty. Stick to archiving and preserving for the benefit of future generations.
When I heard of their library program. I thought it was a really bold move. I’m sorry it worked out this way, but it’s not terribly surprising. They were asking for a fight from day one. I’m just surprised they risked their whole archive mission on this.