There’s no possible way to apply the law where the Internet Archive is permitted to do their lending program. It very clearly is illegal copyright infringement that does not come anywhere close to fair use.
The judges do not have the authority to completely overrule both the text of the law and the massive body of precedent. The Supreme Court could, except the Constitution explicitly grants Congress the right to regulate IP how they see fit, and the law is super clear that you can’t do anything that resembles what IA is doing in any way.