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Absolutely, though you may run into formatting errors because Mobi is much more limited than ePub and sometimes the producers just slap together ePubs which aren't that great to begin with. I use a text editor and KindleGen+Mobi2Mobi to fix these.
I buy mainly DRM-free MultiFormat books when I can, but most of the DRM-ed purchases I make come from Kobo. I actually buy many more books from them than I do from Amazon, despite the fact that their cost comes from my own pocket rather than those Swagbucks-subsidized gift cards.
And of course there's the library e-books, though I tend not to bother fixing those unless there's something seriously wrong that completely messes up their readability, because I'm just going to delete them off the Kindle when I'm done anyway.
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