There are lots of ways for libraries to take advantage of Web 2.0. Plenty of libraries already do some kind of chat or IM-reference, including the library where I'm doing my practicum. While this might be a bit less of a priority for something like a public library or a research institution, the main undergraduate library for a large academic institution (such as where my practicum is at) gets bombarded with questions every evening by students who have trouble finding something, but don't want to have to pack up all their stuff, give up their seat (which, most nights, will fill immediately and they won't be able to reclaim it) and march down to the reference desk. Libraries are also getting big into blogs, since most blog editing programs (such as this one!) allow for easy, what-you-see-is-what-you-get website creation, which can then be edited by anyone on library staff regardless of web-programming knowledge, making such sites much more likely to be kept up-to-date.
On the Library 2.0 end of things (which I've already gone into a bit more detail about below), libraries are really getting into OPACs and programs that allow for more patron input into the library catalog, with things like tagging and related-item searching. LibraryThing is by far the most successful and most cited resource for this, and can add a great deal to a library's catalog, if they feel ready to implement it. The tag cloud takes a while to build up, but once it is, it can be very helpful for browsing patrons looking for a quick search. Implementing things like links to the Amazon site, for reviews and other recommendations, could be a thought as well (the new WorldCat interface does this, and the MadCat catalog used at UW-Madison links automatically into WorldCat... it's somewhat roundabout, but can be useful and fun). Regardless, Web 2.0 and Library 2.0 are already inveigling themselves into many libraries' everyday functions.
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