How very disappointing. I only tried it out within some <h1>s, and the keywords seemed to work well enough there.
Guess I won't be doing F<span class="smaller">AKE SMALLCAPS</span> for initial words in starting paragraphs any time soon.
Also, Kindlegen does not understand pseudo-class selectors. Not even the CSS1 ones. But that's only to be expected.
And if you nest a <dl> within a <li>, the contents get bumped down a line to look like:
Code:
1.
Story Title
First published in Magazine Issue #, YEAR
even if you eliminate all whitespace between tags and set the top and bottom margins to 0.