Sony is smart. While we don't know (except through the stories posted here) what the sales numbers are at their store, we (including Sony) do know the Fictionwise has added the format to their offerings, Baen has added the LRF format to their offerings, and Steve Jordan Books offers all of their titles in Sony format. (BTW: Steve's books are great and very low cost. Check him out at
http://www.stevejordanbooks.com)
All of these sites would not offer the format if there was not demand. This demand is driven by people that have bought the Reader. I have purchased from all three plus the Sony store. Most of the books on my Reader are from MobileRead and those I have created for myself.Somehow I missed all of Haggard's work in the earlier days. Thanks to Harry I discovered and loved it. (Also be sure to check out Harry's Omnibus collection of Sherlock Holmes. It has been on my Reader since it was first posted here at MobileRead.)
Will Sony release newer versions of the Reader? Yes. Will they continue to support the LRF/LRX format? Yes. Even as EPUB emerges in the future and Adobe continues with DE, it is an easy addition to keep supporting the LRF/LRX format through software on the Reader.