I don't really know if there is more hyphenation but I did notice that I cannot highlight a hyphenated word (either the first part at the end of the line or the second part at the start of a new line) to be able to use the dictionary, etc. I wondered if it was due to screen sensitivity being less near the frame but other, non-hyphenated words at the end of lines work fine. I don't know if this was a problem with 1.1 but it is definitely a problem with 1.2. Perhaps running the files through Calibre to remove hyphenation would be worth it. Seems like a lot of work, though.
I do wish there was a better epub reader.