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The Kindle is an ereader designed for the masses to primarily read novels. The vast majority of these people don't need PDFs. It's only a small minority that do and Amazon isn't about to waste the time and money on them.
I don't read PDFs on my Kindle, nor do I have a need to do so. The Kindle format provides me with all the reading I need. And the same goes for everyone I know who owns a Kindle.
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