Deprives creators of compensation in what way? It requires a copy or copies of the book to have been purchased in order to lend out. And, the creators of books see dick-all from the sale of the book. Most of the money goes to the publisher, who acts as a gatekeeper to decide which books are worth publishing and de-incentivizes the production of new works. What a dumb argument in addition to being morally reprehensible.