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Reliable formatting is the reason I use PDF for my ebooks. It allows me to put a specific typeface in my ebooks that will display consistently on my ereader along with the other formatting (such paragraph spacing and font size).
However, as touched on by twowheels, its major disadvantage is that PDF ebooks work best when sized for the specific screen size. I use OpenOffice.org to generate my PDF ebooks and if I want to put an ebook I've formatted for one ereader on an ereader with a different screen size I have to reformat the ebook and then regenerate the PDF ebook.
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