I'm sorry, the disregard for books in these responses is unbelievable.
Sure, if one is studying engineering, mathematics or computer science one may question the necessity of having a massive collection of books in a library and wonder why it wouldn't be better to have just the latest data available online.
However, as it happens, these aren't the only things one studies at university. If you are doing history, the social sciences or literature, your degree involves a lot of open-ended research that may take you to esoteric, obscure topics. It may occur to you to need a 400-page book written 70 years ago about the dietary habits of third-century Roman slaves, or a structural analysis of how postcolonial policies affected Indonesian aristocracy. There is, simply put, far too much information distributed amongst so many books, every one of which are significant in some way.
This is why, as much as the system adopted by UTS IS a technological marvel, the notion of moving old books into storage and having "people [at] the center of the library rather than the books" is essentially flawed: a lot of study involves open-ended research and the ability to browse through shelf after shelf of books is crucial. At the University of Sydney just down the road where I studied, they are doing a similar library restructuring: adding more "study spaces" and moving hundreds of thousands of books from the open stack to (human-maintained) storage - and this changes people's study habits for the worst. Students are less likely to be successful in browsing the shelves and finding information they wants and other relevant texts, and become more used to looking at online article databases. Which have a bias towards things published more recently, and papers do not go into topics anywhere in depth as actual books - blinding students from the wealth of information locked away in the murky depths of "storage".
Universities are a place of learning, and the library should be the accessible fountain of knowledge that all ought to benefit from. Please, keeps the books forever.