There’s no possible way to apply the law where the Internet Archive is permitted to do their lending program. It very clearly is illegal copyright infringement that does not come anywhere close to fair use.
The judges do not have the authority to completely overrule both the text of the law and the massive body of precedent. The Supreme Court could, except the Constitution explicitly grants Congress the right to regulate IP how they see fit, and the law is super clear that you can’t do anything that resembles what IA is doing in any way.
Use the library. Find stuff you like. In the US, Libby and Hoopla are great digital borrowing options a lot of libraries support. I tend to actually buy fiction when it’s an author/series I want day one. (Mostly audiobooks, some ebooks). For nonfiction, I do the best research I can to determine that it’s evidence backed and well respected by other authors in the field (generally psychology-ish).
In terms of the format, I mostly don’t do physical books. I can’t carry 1000 of those in my pocket. I mostly get a handful of favorites to have on a shelf and maybe talk someone else into reading, but I’ll still read on my ereader or audio. My preference is audiobook because I have a lot of time where I can listen while doing other stuff. I do get a fair number of ebooks as well, but a lot of those are programming books because audio doesn’t work for code and especially because there are a lot of awesome bundles through Humble Bundle for them.