LOL!
Your post made me chuckle.

Better watch out or you will soon have ereader clutter!
(I know someone who has four....)

Wish my library had a system. Until then I'll just read them the old fashioned way.

P.S. My sister's Kindle doesn't work with her Library system

When DD bought me a Nook last Christmas, we first checked to see that my library system had download capability. they did. Just recently our library has added the Kindle system. I love my Nook, but I still check out hard back books too.
Could you take your ereader to your local library branch and get someone to help you with downloading their software or whatever you need to do? Before you spend the money on a new ereader?

Our neighborhood Barnes and Noble trained the local librarians how to help library patrons use the Nooks to successfully download books. Perhaps a phone call to your Barnes and Noble will point you to a librarian who can help you with a Nook. I have a Kindle, and I guess if you want to download all free material it is acceptable.... but I could not see purchasing an eBook when the legal rights to published materials seem unclear... But Amazon books are too expensive. I wish I had purchased a Nook.

OT ~ There are loads of free books on the kindle. There are also loads of low priced books. When you view the top 100 best seller list you will find a button at the top right hand corner for the current top 100 free kindle books. Click on it to reach the list. Kindle also supposedly now will work with some library loan programs.
I haven't used it yet cause I am spoiled and have had a long list of books waiting on my kindle to be read.

On topic ~ Getting my ereader did help me control my book clutter (not reduce the amount I spent on books). We had at least 6 - 5 shelf book cases in the house, all stuffed to the gills. The books were stacked two deep and all the space on top of the books were full. It was either get a kindle or buy more bookshelves. At the time it was admittedly a splurge. I love it! We have since gone through all our books, given the good ones to our young adult children along with a couple of bookshelves and donated the rest, bookshelves and all. I love the space I have reclaimed, I love the easy access to a book the second I am done with the last one and I love that it fits into the my purse and goes with me everywhere. There are so many times I find myself waiting somewhere and am thankful my book is always in my purse and doesn't weigh a ton.

If you get an ereader can you bear to release some of your books?

I have a Sony eReader, and I can download my library's books just fine. I am trying to checkout/buy only ebooks simply to reduce my clutter. If you go to the "mobile reads" website, or do a search for Literati ereader and library books, you should get some help on how to download your library's books.

I have found my Kindle to be great for holding my genre reads (mysteries, urban fantasy, science fiction) especially anything with a gazillion books in the series. So yes, if you like your e-reader and especially if you like genre fiction, it's a good way to reduce clutter.

You might try in the Computer section of GardenWeb, some folks there have the cheaper ereaders/tablets although a quick glance seems to indicate that the Literati has pretty limited functionality so "borrowing" from your public library may be impossible.

I have had my kindle for a couple of years now and would not be without it. I did reduce my book clutter by taking all my books to the public library. They were glad to have them, I was glad to have the space on the shelves for other stuff, a big win/win for all. I only kept some of my cookbooks and they may not last long. I am in need of some more space.
So having an e-reader is an excellent way to reduce clutter.

Speaking of Kindles and book clutter, did you know you will NEVER see any of the Harry Potter books on an ereader? Why? JK Rowling (the author) says books must stand on their own. She will only allow print versions of her books. For that, I say "hurray". I love the feel of books, of turning the pages, and then setting a beloved book on a bookshelf. Why else do people keep bookshelves? Not because they want a mini-library in their homes. They want the comfort of being surrounded by the literature and texts they love. Hobby books show a person's interests. Then again, books do create clutter. Years ago I went thru all my high school and college books. I donated or threw out almost everything. Who needs a 1960's version of How to Study for the New York State Algebra Regents exam? I passed that class a LONG time ago. I ended up keeping only ONE book, the Complete Works of Shakespeare. Yes, all the plays and sonnets.You can't throw out Shakespeare!

I am not sure about the abilities of the Litterati ereader but many of them require the use of Overdrive to be able to access the library for library books, here are the instructions for Overdrive, you must of course also have a library card.
How To Get Free eBooks From Libraries Using Overdrive

My local library works only with the Nook. Any ideas how to get around this? My daughter gave me a Kindle for Christmas. I'm having lots of fun with it. I found a good way to get free books on kindle, go to the Kindle store, then under "search" simplly type in 0.00. I got a list of 206 free books. That should hold me till my next trip to the library.