If we need to produce a decryption key from a server, then we might as well sell direct though the author's website and bypass nostr entirely.

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You're ignoring the network/marketplace effect that a library has. You can get recommended books, browse and buy on the spot.

Like in the real world, sellers are incentivized to show their wares in a high traffic zone.

I am completely aware of the effect that it has, but we're talking about the mechanism of selling books on nostr.