This story has popped up in a few different places over the past few days.
I do think we are slowly and most likely inevitably moving towards a world in which most information is accessed electronically, and we're not going to get there if we keep waiting for the "just right" moment to make a switch.
I don't think a $50,000 coffee shop—complete with $12,000 cappuccino machine—is necessarily indicative of a desire to be on the forefront of electronic access to school library material.
Electronic text has a lot to offer—one of the reasons I find it so appealing is that it is much easier to make electronic text accessible to students with print-based disabilities. But physical books still have their place, and we are still a ways away from having everything available electronically. I think moving towards increased electronic access makes sense, but making that move simply because books take up "too much space" seems short-sighted to me.
The most depressing part of this story for me is how sad the librarian is about the change. I can't imagine being in her position. If you're going to move this significant, the librarian should be completely on board—if she's not, I have a hard time believing that the change is in the best interest of the school.
A library is much, much more than its books. Just because the library has gone digital it doesn't mean that students and teachers will all of a sudden understand how to navigate all of this information; I would argue that information literacy instruction is even more important in after such a radical shift in how students and teachers access resources.
It may be possible to have a library without books. But this doesn't sound like a library without books. It sounds like a coffee shop.