Re: Publishers absolutely hate those places. I've heard them called "libraries".
However, if a book is lent from that library, then it is no longer available for anyone else to read until it comes back. If a book is compelling enough, the borrower may want to acquire their own copy, therefore it could be argued that libraries can stimulate book sales.
As Mage has already mentioned, in acquiring a book into its collection, the library is, by some mechanism, paying the requisite royalty fee to the author.
The real target for hatred should be reserved for the photocopier and/or its derivatives.