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drizzle, most of the free online libraries use Mobi as well. They know that Amazon is huge and want to provide books to all. If you live in the US, libraries lend Mobi books as well as EPub so that is not a huge issue. Check out your local libraries catalog and see what they offer. I know some libraries have more EPubs then Mobi but you should look first.
If you buy books from Amazon, Sony, Kobo, or BN you will most likely buy something that has DRM. You will have to strip the DRM and then convert the book. It is not hard to do but it is an extra step and you have to be comfortable with doing so (technologically and ethically comfortable).
Amazon allows you to save a copy of the book on your computer. I have the PC Kindle App on my desktop and I save all of my books to my desktop. I back those up on a hard drive and a thumb drive. And they are in Amazons cloud.
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