Because EPUB is slower to display than LRF, the intra-document links are extremely slow compared to intra-document links in LRF and the text is not justified on my PRS-505.
It makes no difference to me which format is "more readable" or "more compatible" since I keep the original files in pure HTML and batch-convert them as needed - so if a better support for EPUB comes out in future firmware, I will simply run one command ang get all my books converted to the new format. But at the moment, LRF is simply better.
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