Ours still has fines, but they're really small (max of $4 per item) unless they bill you for replacement for not bringing something back (or bringing it back destroyed.)

I think it kinda works for the most part, some people just don't care for others' stuff, but I think a fine structure that's acts as negative reinforcement toward expected behavior without being overly punitive, is good for keeping material in the library.

Heck, they even renew automatically. They're definitely not out to make a revenue out of it or harshly punish people.