We just started at my library, over my objections. Of course, we don't buy the games...we only take in donations. Too expensive, and too risky due to the possibility of theft.
As for why we started getting them, it's largely because people kept asking about it.
But having worked at a library for the past 9 years, I can tell you that it's not all doom and gloom. Yes, we're getting more movies and music. But that's because people want them, and they're no less valid forms of entertainment than books. There's no hidden agenda here. We like circulation numbers, they like the items.
And internet being a good source of information? Maybe, but it depends what you want, and how willing you are to purse through fallacies.