Not considering drm, I think pdf is a fine e-book format.
There is a bit of an analogy between pdf and html: if you want your webpage to be viewable on every webbrowser, keep your content in clean html. But if you want a really spiffy looking webpage, you're going to need a lot of bells and whistles, which are definitely not html... meaning your webpage will only be viewable on some fairly recent webbrowsers...
I guess the same goes for e-books. If you want your story to be read by everybody on every e-book reader, make it available for free in an open format (html?). But if you have some really specific layout and design needs, it might be that pdf is the only way to go...
So, is pdf a valid e-book format? It depends, but I guess it has its place...
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