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1) books can be added from the front-end by site admins.
2)You can Add Review and button Add Review.
3)Yes, the borrower and site admin will receive an email in BookLibary Component
4)Yes, borrower and site admin will receive an email, when book returned in BookLibary Component
5)There is no special slider or module that can display random books, but you can change Single Category Layout in BookLibary Component.
6)You can show list of books in two ways. Please, what you mean can a random book cover be shown instead of a folder icon?Refine or send a screenshot.
If you have any further questions, please ask.