Sorry, I agree that it is crap and no real ePUB. The issues you mention should not even be there if Kobo actually bothered to update the ADE engine instead of using an old one. If you download an ePUB, you should be able to read it on all ePUB readers. Not a special one for Kobo, Nook, iBooks and so on. If they think they need the 'special' features, call the format differently and not ePUB.
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