The Special Collections department at Iowa is not a lending library; they're a research library and manuscript archive. The practice of being able to copy small amounts of material is standard fair use practice among research libraries and not at all "zine piracy" any more than being able to photocopy pages of a book that's still in print at your local library is "book piracy." There's a reason that libraries--all libraries!--have photocopiers in them.
This isn't a zine selling business; this is a nonprofit research library where a librarian has to go through the effort of unearthing the right box, finding the right pages, copying, and mailing to someone who needs them. It's a lot of work, and a service to those who can't get to the library.
I'm sorry that this is upsetting to you, but honestly, this is the most basic of library practices and nothing at all special to us or this project.