No, I said they represented themselves to customers in such a way as they could come up with whatever copies is needed to fulfill "unlimited." The customer could care less how they do that. Going back to the beginning of this vicious circle, how does the customer know they don't do with Paramount and their ilk for movies what PC vendors do with Microsoft for Windows. You're a street sweeper you don't know boo about what the company you are dealing with has to do to get okays from the publishers they deal with. Nor should you have to know boo.
But they didn't represent themselves like that. They outline quite explicitly that they have a limited number of copies of everything. In your queue they even included an Availability column that tells you if it's available now or after a short or long wait. So they're very upfront with the fact that it's a library lending out a predetermined number of copies, not an on-demand service making copies as necessary.
It's not the average customer I'm talking about. I'm talking about the customers that know a little more, that maybe worked for one of the distributors and can eyeball it, or maybe even "customers" that don't really exist but are fake people made by distributors to try to sting the rental services. Most of the time when a piracy ring gets busted it's because of the non-average customer who looks and says "huh, that don't look right".