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I can't comment on the PDF reader as I don't use it.
The kepub reader has some serious formatting problems in 3.1.0, not all books are affected, and some are affected worse than others, but the worst affected ones are pretty much unreadable.
On the other hand the epub reader works better than in 2.8.1, page turns are smoother, and it gets some of the new features such as a back button to return to the place you opened the book from, and the dictionary allows cross-referencing and google/wikipedia lookups.
(Since 3.1.0 is worse for reading Kobo-bought kepubs and better for reading sideloaded epubs, I suspect Kobo will fix the problems with the kepub reader fairly quickly.)
The Kobo Nickel font has super-wide line spacing in 3.1.0, other fonts ae OK. This can be worked around by applying the custom line spacing patch which allows you to set the line spacing as low as you want for any font.
Library navigation has some good new features compared to 2.8.1, you can mark books as unread, and list only reading/unread/finished books.
I haven't had any of the Wifi or USB problems that others have reported, I'd be a lot more negative about it if I did, but I see 3.1.0 as a big improvement over 2.8.1 in almost every way except for one very serious fault (the kepub reader). If Kobo can fix the kepub reader soon then I'll be very happy with this firmware, otherwise I will probably go back to 3.0.1.
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