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Originally Posted by Elfwreck
You lost me. "Combined Mobi/ePub format?"
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Most ebooks that are now being submitted to Amazon have their source files (which is increasingly becoming is an ePub file—by Amazon's own encouragement) embedded in the resulting mobi. Kindlegen does this by default. It would be trivial to modify the reader software to actually read/display the epub that's embedded in the mobi. The ePub is just another record in the mobi binary, after all.
You could take everything a step farther and say that the Kindle would have no
need to support DRM'd epubs (specifically ADE) because the epubs will already protected by Amazon's own DRM—on the mobi that they're a part of.
Amazon will be selling DRM'ed mobiePubs... and the "mobi" could eventually be relegated to simply being a DRM container that holds the ePub.
I don't ever expect them to support DRM'ed ePubs from other retailers on their devices.