Challenging Google's digital library project

Responding to Murray's invitation my first post here is about a hot topic, at least in Europe. Should European libraries challenge Google in the universal on-line digital library project? For those not aware of it, see the recent political declaration by European leaders. Posted on diglet – a blog devoted to digital library issues from the UCSD Digital Library Planning Working Group.
From the same source, a recent post about another reaction: University-Press Group Raises Questions About Google's Library-Scanning Project:

Saying that Google's high-profile library project "appears to be built on a fundamental violation of the copyright act," the Association of American University Presses listed concerns and questions about the project in a six-page letter to Google's top lawyer. The complaint is one of a growing list of formal objections to Google's digital-library plans by publishing groups.