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I've often used the pipe-hose analogy (especially with firemen). Dial-up is a garden hose, broadband a 3" fire hose and the trunk lines a water conduit.
As to the library analogy, it's good. But take it one step further. Fragmentation is more a matter of having to find the book cover (program or file) and then having to hunt all over the stacks for each individual page and put them in order so you can read the thing.