No, I use Aldiko, and I don't have the 'No SVG cover' option enabled. I'm pretty sure Aldiko supports svg just fine.
I'm not sure why it's not showing the covers. I've never had that problem with it.
I don't use the 'Send to Device' option for getting my books there, though. I use the content server. I don't think that should make any difference, though.
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