That is an element, but given the PR cost I’m sure they would use non-destructive scanning if they could.

No, the core problem is that keeping a scan is legal if and only if you destroy the physical copy.

It's both. The court has ruled that they can't make a copy of the book, but if they scan and destroy the original then it's fine because it's not creating additional copies.

Yep, it should just be illegal as a whole