Thanks everyone.
@Hitch - well, what I didn't say is that I'm using Calibre to convert my XHTML file, and we get 3 choices for MOBI: "old," "new," and "both." I use "old" for my MOBI conversion because Calibre warns us that there will be display issues with the other two options in some devices. For KF8 I convert to AZW3. So my best guess, to answer your question, is that the MOBI format I'm using is for the pre-KF8 devices.
@DiapDealer - yes, I've come to that conclusion as well. Monospace fonts won't work for my book, I'm afraid.
@Susan_cassidy - thanks for your opinion, which I respect, but I've never liked the word "should."
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