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The Kindle has no more "format restrictions" than any other reader. It will read any DRM-free Mobipocket book, and it's easy to convert other formats such as ePub into Mobipocket.
The Kindle has perhaps the best searching around. It indexes all the books you have loaded, meaning that you can not only search rapidly within a book, but can search your entire book collection for matches.
Pretty much all devices do bookmarks.
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