These routers are pretty good choices for the schools. For the smaller sites it's hard to say without knowing their exact requirements for the future. For example this might be related to your question about the Homeland Security Chief being involved. Libraries are multipurpose buildings. In an emergency they could be used as an emergency response command center. Perhaps the library is used as a polling place and they have specific security requirements. The state may have decided it was in their best interest long term to equip all government buildings with a baseline level of equipment.

I think part of the reaction to this story is people coming to terms with how much real network equipment costs. It's definitely not cheap. You're paying for features, service, long-term support, upgradability, reliability, etc. Some of these routers will probably be in use 15 years from now. I've still got a Cisco 2500 series router chugging away. Next year will be it's 20th birthday. This stuff is built to last.