Liber-library on the Internet

Theoretically, all public libraries are "free". But they are not really free if you can't get to them. And University libraries aren't free unless you have paid your tuition. So your term "liber-library" is quite good. Perhaps it could be improved somewhat by calling it the "Libernet Library" because it is only accessible on the Net.

TEd Rem argues that writers of quality will stop writing if they can't make any money at it.

Will the Dostoyeskys stop writing, the Van Goghs stop painting, because there is no money in it?

Can genius be thwarted by impecuniosity?

Not if there is a "libernet library".

The people who are most passionate about the possibilities of the Internet have always said "information wants to be free".

Nature abhors a vaccuum. Information abhors a cage.

One can understand TEd Rem's misgivings, as a published writer, about the "libernet library". And his concerns are certainly legitimate. But we should not assume that new models will not be created to compensate writers for their works commensurate with the demand for their work [other than self-generated demand, of course].