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The new PRS-505 firmware has changed the way I read PDF. I use to convert them by default.
Before PRS-505 Firmware:

Convert 1: If the PDF is something I plan to reference or re-read then I look into converting it. Using pdftohtml and BookCreator.dot.

Convert 2 OCR: If the PDF was an image I used a free(open source) software terraocr and have a series of scripts that convert a PDF to text. Then use BookCreator.dot to format the text. If there is no graphics in the PDF the conversion is quick and easy.

PDFLRF If conversion will take a lot of work. (e.g. two columns PDF or lots of graphs. I use PDFLRF.

After the Firmware I've changed my PDF process:

Leave as is: I first load the PDF to the PRS-505 reader. If the PDf looks good on the PRS-505 I leave it alone.

PDFLRF: The new firmware also loads large books much faster. Before I would have to break up PDFLRF files into small sections (about 2MB) for acceptable performance. I can now convert the whole book with no problem.

<Then I look into>
Convert 1
Convert 2