That’s what Kirk Biglione says in his MediaLoper article. According to Kirk, Publishers Lunch reported that many large publishers won’t participate in B&N’s LendMe program for fear that lending will somehow hurt the market. As a matter of fact they required B&N to reduce its lending program from unlimited to just a maximum of 14 days, and then for only one book at a time. All this, of course, completely ignoring the fact that readers regularly lend their paper books to others. Kirk says that lending seems to be the equivalent of Amazon’s text to speech problems.
If publishers want to get the prices of ebooks up, why cripple them. As Kirk notes, the perception of an ebooks’ value is what sets pricing. The more features you allow, the more you can charge. But I guess this isn’t understood very well by the powers-that-must-be obeyed.