hold the hysterics please -- the ruling has long been expected and has nothing to do with images

google's project allows searches within books but does not make the full books available; most of the content is out of print and would otherwise be unavailable.  copyright is respected -- it's the same whether it's text or images

google delivers copies of books it has licensed, or thru their library project:

Google Books Library Project � An enhanced card catalog of the world's books

We're working with several major libraries to include their collections in Google Books and, like a card catalog, show users information about the book, and in many cases, a few snippets � a few sentences to display the search term in context.

What does a Google Books Library Project book look like?

When you click on a search result for a book from the Library Project, you'll see basic bibliographic information about the book, and in many cases, a few snippets � a few sentences showing your search term in context. If the book is out of copyright, you�ll be able to view and download the entire book. In all cases, you'll see links directing you to online bookstores where you can buy the book and libraries where you can borrow it. http://books.google.com/intl/en/googlebooks/library/