Reply to point #4, which began:

Sure, I guess, people could carefully search and search for hours, and attempt to build up an entire book, but that's both painful and silly. And unavoidable.

This is no different from a library. Why are publishers filing a lawsuit against Google, and not filing a lawsuit against every single public library in the entire US as well? If someone wants to spend hours tediously searching for consecutive words in order to get a free book (using Google's proposed Print program), they could just as soon take a laptop to a library and copy from the book directly.