Yeah, I mean, if they just had an archived ISO of every PS3 game in existence sitting on hard drives in the back, I don't think that would be a problem and I doubt that would get them sued because I think that would likely fall under fair use, especially for a library (IANAL), especially if they had purchased legitimate copies of the games and/or had them donated.
In fact, I suspect that if they did some kind of controlled lending program of the PS3 games, or the ISO was available to use upon request (e.g. like the US library of congress), that likely wouldn't get them sued either, but as it stands I'm not seeing a fundamental difference between IA and ThePirateBay, sans the lack of viruses and popups from the former.