Meanwhile, the artists aren't consulted and often some potential for just compensation for their work is destroyed.
The specific (or interpreted) limitations on Fair Use weren't intended to stifle free expression. Rather, the intent was to ensure against diluting the value of a book or other work to the point where no one would need or want to consult it.
Postscript: One wonders why Lessig's and McCleod's books even have copyright notices. For that matter, perhaps they ought to be free downloads, or given away by the Concord Free Press, which makes books available to bookstores and other outlets at no cost, to give away.