I read it in the paper today and went to my library website and sure enough there was the Kindle format available.
I did not download anything and run it through ADE, but will try that later this evening when I have more time. So can't speak to the functionality of it.
I did read in the newspaper article that you will be forced through Amazon's website to complete the transaction, possibly so they can collect your reading habits.
OK it works just like the article said it would. Once you have selected your book in the library and gone to checkout, there is a link to get book for kindle which takes you to amazon where you sign in and download your book in azw format.
Hook up your kindle and drag that file directly to your documents folder on the kindle. And there is the book starting at chapter one and perfectly formatted. Bypasses ADE completely.
I didn't expect that it would bypass ADE, so this now becomes a topic not related to ADE or this forum.