I think podcasting can be great for entertainment and educational purposes. In the past I have used language learning podcasts (like this one) and found them really useful. They are a good on-the-go format, since they only require you to listen.
I had a look at some of the podcasts from school libraries. Working in a joint-use library, I can see that we could get students involved in making podcasts (that could tie in with their assignments) and we could link to them from the library website. Linking to other podcasts that staff find useful also seems like a good idea.
I don't see why our libraries couldn't produce a podcast, say, monthly but I don't feel that it should be the highest priority. I think there are other technologies we have looked at in this course that could take less time and reach a larger audience.