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OEB lacked a container format and couldn't be used as a terminal format for this single reason. LIT is pretty much OEB wrapped up in a proprietary container. Mobipocket used to be this way too, but they extended things so much that it is now some sort of ugly mutant offspring of OEB wrapped in a proprietary container.
In EPUB there's a standard container format called OCF (Open Container Format).
The way Adobe implemented their DRM is actually compliant with the standard: they encrypt individual files inside the standard container, which is allowed in the specs. I wouldn't call it a different terminal format for this reason.
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