Feedbooks.com has a number of books in PDF format that look great on small readers because when they were published, they set the page size to match an ereader. When I first got my ereader I downloaded many of them because they looked good and read easily.
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You know your customers better than us. You have to decide what is best! Every situation is unique.
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There is no perfect format for all books. If I had readers who would use PDFs and used large devices and wanted to do tables or maps, I would go that way. For novels with simple formatting almost any format will do if executed well.