kovid : interesting point. perhaps this was naïve on my part but i sincerely expected indesign (particularly given it's an adobe product, and adobe seem to be quite implicated in epub) to be able to make an acceptable epub file. this does not seem to be the case. hopefully it will improve.
it's true, ebooks *are* completely different from pbooks, however i really don't see why the export could not be integrated into indesign, given a certain degree of thinking ahead, both on the part of adobe dev team and on the part of the end user (through new features, and through user-defined preferences) ; if you use a style called "chapter" (or whatever) for your chapter titles, indesign could automatically recognize that, and shuffle off the text to the toc element. this could be defined via a dialogue box ("style x goes in this element, style y in this other element...") if you are properly using styles to create your document this should not pose a problem. options could be added to text boxes to say "every time i force a page break in a certain way, you create a new xhtml chapter element for the epub" (perhaps they could add a new page break called "chapter break" for just this case). images could be linked to the paragraph they're floated next to. dropcaps (wallcraft : large 1st character is called a dropcap) can be done with css.
again, perhaps i'm naive, but adobe does some amazing things, and they should understand epub, so i really don't think this should be impossible.
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