So if you have a library of non-DRM Mobi books on your computer, you can read them, but you can't upload them directly from your computer? It sounded in that review as if you have to upload them to a server, and then download them onto the ipod. Can that be right? I was assuming you could connect via USB to your computer and put anything you want on it.
Also there was a reference to stripping out bold and italic formatting that rang a bell. Is it eReader on the ipod that does that? What about Bookshelf, reading Mobi files? (I'm completely unfamiliar with Bookshelf.)