At this point, it seems like the sensible course of action would be to create a new entity that leaves still-in-copyright books and music alone, grabs a snapshot of the entire archive, hires everyone who used to work at IA, starts accepting donations so us supporters can switch over, and then picks up, letting IA declare bankruptcy and fall into the sun.
[Edited to add:] Don't get me wrong. I think the current copyright regime is complete nonsense, and I mostly support everything IA has done from an ethical point of view (except maybe giving away recent books for free), but I'm also a pragmatist, and the idea of IA's archive falling into the memory hole because of picking bad fights is distressing.