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On point 1, the conversion is only as good as the source. Some ebook publishers (I'm looking at you, Tor) appear to not even proofread their ebook editions, and you get horrible typesetting and errors. If you see punctuation errors, there's a good chance it's in the source.
I store all my books in ePub format, and convert them as necessary. this makes it much easier for me to edit them if they need fixing.
On point 3, I don't let the door hit the DRM's butt on it's way out. The kindle DRM is as easy to strip as any other format, but in general, unless you're a recalcitrant fogey like me, you won't even notice the subtle eroding of your rights. They make it easy to move books between your devices and unless you want to fix errors or move the book to a non-supported device, it won't bother you.
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