That's great for material that's public domain or out of copyright, but the Authors Guild settlement could have digitized and made accessible orphan works that are still under copyright. It would have complemented the public domain projects, not supplanted them.
But instead academic opponents of the deal seriously thought they would have better luck pursuing copyright reform in Congress (!), and helped kill the settlement. Of course, in reality Congress did no such thing, and so the chance to rescue orphan works was lost.
While a good step, this only makes up for a portion of what the settlement would have allowed. (Most obviously, it appears this only covers books from a 20 year period and it takes more work to ascertain that the books are not being sold.)
Moreover, this does not contradict the idea that the Authors Guild settlement could have complemented public domain efforts. Even today some of the books saved on the Internet Archive were retrieved via Google Books: https://archive.org/details/googlebooks&tab=about
Funnily enough, that's also how the original article described the opposition to the Authors Guild settlement. As it turned out, killing the Google Books project didn't really move us closer to copyright reform.
But instead academic opponents of the deal seriously thought they would have better luck pursuing copyright reform in Congress (!), and helped kill the settlement. Of course, in reality Congress did no such thing, and so the chance to rescue orphan works was lost.