Kindles Can't Be Loaned by Libraries?

Tim Spalding of LibraryThing posted a link to this discussion on the blog Tinfoil Raccoon (live-blogging notes on the Kindle here)of whether Kindles can be loaned by libraries. Tim's comments here. Right now it looks like Amazon is sending mixed signals as to whether Kindles can be loaned. One application it suggested to me, if Kindles can be loaded with documents then unregistered and loaned, would be special genre or subject Kindles. You could load one up with C.S. Lewis' books or load one with different biographies and then allow a person to check out several books on one topic at a time, but only counting one toward their patron limit. Obviously most libraries couldn't afford very many Kindles at once, but at up to 200 titles a piece, how many would you need?