The Kobo firmware does hyphenation in English. From what I can see, it does a reasonable job. I know it does as well for other languages, but I don't know about Dutch. Someone has posted instructions on changing this in the Kobo forum.
The other part of this is the text alignment. Paper books tend to justify text, so words are either spaced out more or split at the end of the line. Personally, on my reader I prefer left justification which results in the ragged right side, even spacing between words and little hyphenation. The Kobo devices can set this, but if it is set in the styles of a book, the device doesn't override it.