I've used Shelfari via my facebook page before, so I've had limited experience with Social Cataloging (I didn't know that was what it was called at the time, though). I loved the Shelfari setup, but I just used it for my own benefit, not to meet other people or compare books I've read with others.
Libraries could find a lot of use with the social cataloging tools. We have many patrons who come in and have trouble keeping track of all of the books they've read. The need us to scan each copy (usually 4 or 5 at a time) to verify whether they've read it or not; it's not usually a problem, but it's frustrating for them when they've read every book they've asked you to scan.
Tools like LibraryThing and GoodReads would allow them to keep track of what they've read, and categorize them in any way they wish. Because our collection is so small, it's not unusual for people to have read all of our books (or all the books on a certain subject or by a certain author). Social cataloging would allow them to find books suggestions from other patrons who have similar reading interests (patrons who wouldn't mind going public with their reading interests). Librarians have specific literary interests, and sometimes when a patron asks, "have you read anything good?", I'll know that what I think is good is definitely not his or her cup of tea. Through social cataloging, librarians can get help from patrons' virtual bookshelves on what someone else might like to read. It is a definite must for libraries that can maintain it and have patrons willing to participate.
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