I think every downloaded book has new typesetting now, but sideloaded books does not. I checked many of the books I've orders over the years, all had hyphenation.
I really want to buy a Kindle and make use of KU for self-published books, I read many of them (I pay for KU, but read them on my iPad). But I will wait until proper typesetting works with sideloaded books too.
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