I've come across some more details on support for non-BBeB file types:
It appears that you
can just load your RTF, TXT and or PDF files onto an SD card (or Memory Stick), stick it in the reader slot, and go to town. PDFs really need to be sized to the screen, of course, and it's not yet clear what sort of zooming will apply to them (TXT & RTF can use the three available font sizes), but there you go.
Apparently you do
not have to convert to BBeB at all. In fact, the only files in BBeB format are supposed to be the ones from the Connect store. And anything you go out of your own way to convert, of course, if you enjoy that sort of pain.
Theoretically, there may be some speed (and I'm guessing maybe battery life) benifit from running it through Sony's import routine, as it seems that it is supposed to kind of "pre-render" the file in some sort of cache (in either onboard or card memory) for display, but it doesn't convert it to BBeB format, the file remains in its previous format on the device (plus the cache).
I find this encouraging, as I've long thought Sony has really got its hardware act together, so I'd actually feel a bit more of a comfort margin with their hardware. I'm still wondering about the DRM situation, but given the ability to completely avoid using the Connect store and BBeB format if I so choose is encouraging indeed. Especially when I'm still choking on the iLiad's price tag. (hem-hem)