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• The resulting book is page-based, not "location" based
• Font sizes cannot be changed on the fly (by the way, nor can they in a physical paper book)
• Leading (space between lines) cannot be changed on the fly (ditto, nor can it in a physical paper book)
• People want to be able to change the font size to better fit their vision or fatigue. I think this is a big issue and one lots of consumers would be loathe to sacrifice — although we do so every time we purchase a paper book.
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You're defending PDFs as an ebook format, wasn't it? If you do, do not put paper books in the discussion. We're not talking of paper books versus paper book ersatz thingies, but about electronic books.
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• File sizes for PDFs are much larger than for the equivalent ePub or prc/mobi versions. Fewer books can be loaded into the same memory space. For example, I can only fit 1,000 books on my Kindle 3 rather than 3,000. Is this a crisis?
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Suppose I have a Cybook Gen 1. It has a slow processor and not much RAM. Not being able to maximize the quantity of readable words per page + slooooooow paging = no reading fun. And we're not considering the greater battery consumption that rendering bigger files does cause, and which would make one of the core virtues of eInk moot.
Beware of "easy solutions".