This is the area that I'm disappointed most with in e-readers - basically just a lack of effort in making e-books that are properly formatted.
That's the step that needs to be taken to really make e-books take off -along with a mass market price. Though I suspect that will go hand in hand - once a lot of people get e-readers, they'll demand better quality books.
Basically it's like if companies mostly offered 64 and 96 kbps mp3s. That wouldn't be acceptable. Even at the start of mp3 sales, they were at least 128 kbps. But even that was deemed to be no longer good enough.