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They appear to have resolved the delivery problems for the Toronto Star to my Kobo Touch. There are still some niggly issues with the iPhone app, but from what I gather that is somehow specific to my Kobo account, and the fix will be at the server's end. (They managed to replicate it on their end, that somehow only 10 issues out of 14 are being delivered to my iPhone, not including the most recent 4 issues.)
I no longer see any reason to avoid subscribing to newspapers through Kobo at this time.
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