A genuine question to commenters asking to "put a grownup in charge of the thing" and saying that "Kahle shouldn't be running things": he built the thing, why exactly he can't run it the way he sees fit?
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Most of us care mainly about the Wayback Machine and archiving webpages; not borrowing books still under copyright and fighting publishers.
Under discovery in the case, it turned out that Internet Archive didn't keep accurate records of what they loaned out either. Another example of sloppy engineering that directly impacts their core mission.
The fate of the organization now rests on the outcome of other lawsuits. In one, Internet Archive argues that they are allowed to digitize and publish Frank Sinatra records because the pops and crackles on them makes it Fair Use.
If they did all this cleanly under a different LLC, I'd sit back and enjoy the show. But they didn't.