It does hyphenate (or not, configurable), and yes, font size and height are customizable. Font size via UI, line height, paragraph spacing and whatnot via editing CSS files and disabling embedded ePub styles. As for font optimization - no idea, as I don't really know it. It uses any fonts you install, so if that's what it's about, it would work, I guess.
I guess you need to hear more about user perspective, though the thread's title probably won't invite them. While I'm a user too, my own needs are ridiculously simple (koreader surpassed them long ago), and I talk more from a developer's point of view. So I can't really advertise it well, I'm afraid.
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