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Interesting read, this topic!
I don't have a problem classifying PDF as ebooks.
I DO have a problem calling PDF format something else than PDF! "Adobe" is a company that has several different software products and encryption scheme(s), NOT a format! I NEVER use Adobe to view PDF files, so to me "Adobe DRM" means that it's encryptet with Adobe's encryption scheme.
Even though I personally wouldn't expect ePub unless specifically stated I think Diesel Customer Service has handled the OP's problem poorly!
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