I have used lrf and epub, and I find the conversion to epub is better as
it is invariably smaller in size and allows me to add much more to the PRS-300, the final output is as good as I would want it.
I think the only advantage to lrf that I miss (and there may be others for you) is the full left and right text justification. But the almost double the number of books and a slight increase in speed in handling epub does it for me.
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