At the moment, the navigation control can increase or decrease font sizes; move one page forward or one page back; or select a menu option. It does not interact with the content on the page at all. I have no idea if a firmware update could change that or not.
EDIT: This is pure speculation, but my guess is that Kobo aims to make an affordable entry level reader and not much more, in terms of hardware. The bigger goal is to sell books through Kobo and provide multiple ways to read the books purchased through them. If I win the lotto this weekend, I may very well buy a more full featured reader. I'll still buy Kobo books. Kobo has created a customer for life (well as long as they have so many books available to Canadians on their site).
Last edited by taming; 08-24-2010 at 10:04 AM.