I've been using Amasis on my T1. I really like it.
Bold/italics are properly rendered with Amasis on the EPUB that I am currently reading. As jackie_w notes, some work and some don't. I have another EPUB that I am reading that has to be kept in original (the italics matter in that book because it's a play). I have read a few books so far that had embedded fonts. I think that most people haven't read enough books on their T1 yet to really notice the bold/italics issues. Depending on the type of content that you read, some people just might not notice or care about lack of italics/bold.