Originally Posted by jusmee
If a simple program can do the conversion from PDF to a format that works, reflows, and is easily readable, that proves that it is easy and feasible for the reading software on the Kobo to do the same, or at least that part of it that allows the PDF to be read easily.
Something like MobiPocket Creator is doing a whole lot of clean-up afterwards - things like filtering out page headings and numbers, de-hyphenation, image cropping, etc. - which would be impossible in real time, at least on current ereader hardware. Yes, you can do a simple reflow without this extra processing, but it looks/reads like crap, see: Calibre's PDF>ePub output.
And of course a simple scanned PDF, which I think is largely what people want to read, is impossible to do any of this with anyway, at least without the additional step of OCRing which introduces a whole extra bunch of problems.