There are workarounds for converting files between EPub and Kindle formats, though generally they require you to find software to strip the DRM off. I've never tried that with library books so I don't know how it would work.
Technology-wise I don't think there's that big a difference these days. To me the main difference is Kindle has a slightly lower price on the device but locks you into their ecosystem with a proprietary format, while Kobo uses the more widespread EPub format. However since there aren't as many sellers of EPub as there used to be that isn't as big a deal as before, really the only places I buy them from these days are Kobo or Google Play.
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