I don't really see how the ongoing pandemic would change the results of the fair use 4 factors test. I think the moral arguments in favor of IA's unrestricted lending are much more compelling than the legal ones (ofc I'm not a copyright law expert so I could be totally wrong).

Part of being a good rebel is to choose your battles wisely :) I think IA does a good job at that when they distribute abandonware or public domain materials. Trying to share unlimited copies of Harry Potter seems much more quixotic.