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Originally Posted by kjk
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I agree, that's not the clearest statement. But if you put all of the bits and pieces that they've told us together, i.e. - syncing across devices, annotations, Real Page Numbers(tm), the best conclusion seems to be that they will be sending the library patron a copy of the kindle book from their own servers. They couldn't do this if they simply converted the kindle to read epub.
And there's nothing magical about epub - Overdrive chose it because it was available to them (which .azw presumably was not). In the same manner that they chose .wma for audiobooks, despite the fact that this meant that ipods couldn't listen to their audiobooks.