[CWatkinsNash]

Because of your #2, where is the lock-in? I have a Kindle, and I don't feel locked in at all, because of #2. Yes, I buy books from Amazon, but I also buy books from B&N, Harlequin (stop giggling), ARE, and about a dozen other places. #2 makes this possible.

I have an epub ereader, which I never use, but it's there and it works. I could easily switch to, say, a Sony (those T1s are tempting me) with little trouble. All my ebooks are in calibre, easily converted as needed...

Rumors are a dime a dozen, but sometimes the unexpected does happen. If Amazon allows epub, though, I suspect it would be drm-free epub only. I really can't see Amazon paying Adobe when they don't have to, and they are big enough that they don't have to.

Mobipocket is pretty much dead. The Mobipocket Creator software, though, is excellent to have on hand if you have a use for it.

And it's worth noting that while Amazon is the only seller of drmed mobi (azw) files, they are not the only source of mobi files - ARE, Smashwords, and several others offer drm-free .prc or .mobi files for purchase. It's the DRM that's the issue here, not the format.

I love my Kindle Keyboard, I won't pretend to be unbiased about that. I've tried a few others (Nook, Kobo, tablets, etc) and as I mentioned, I have other ereaders, but my Kindle is my favorite by far. But that's separate from Amazon. I do a lot of business with them, but I'm not exclusive. And it's because, again, of #2.