Two things can be true:
The #InternetArchive is a gem, a marvel, and its mission should be enshrined into law. I have given hundreds (maybe thousands) to the Archive over the years.
The Internet Archive fucked up, overstepped bounds, behaved rashly, and, in attempting to rectify the situation, resorted to tortured 'fair use' defenses that any reasonably intelligent person can see do not apply to this case. Because they really had no legal standing for their actions.
Essentially, the IA fucked around, and now it's found out.