Libraries tend to hide behind the PATRIOT act (federal government being able to come and take all records of a user's library activity). I haven't actually seen anyone invoke FERPA, at least for library related issues.
I do agree that libraries missed the boat! (perhaps though it's not too late!) A number of years ago I had developed a proposal for a new type of library website (for one of my IT courses) that I never really presented or published anywhere. I was reading some articles yesterday and it seems like the concept is still not really out there. It's given me the idea that perhaps I need to write more about it :-)