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Stand by them all you want. Comparing them to open formats will certainly not put them in a favorable light.
The point is that once you unseal the file, you can move it around onto any device you want and DRM is no longer an issue.
The state of the html you get out of a lit file is exactly the state they were put into by the publisher. If they author a correct OEBP file, conversion will not be an issue. If they put in crappy html with poor tagging practices, it is going to be a crappy html file with poor tagging practices. But that is not the LIT format's fault.
LIT is still a better choice than Palm, Acrobat, Rocket or IMP if the point is to be able to move content out of the format you choose.
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