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The latest update to the iOS app (4.9) appears to have brought some of the aforementioned improvements ("Some of the changes currently being introduced are automatic hyphenation for supported Latin languages, typographic drop capitals, and normalization of line height."). The 'normalization of line height' is what I notice most so far.
Hyphenation in particular is not (yet?) ubiquitous, but is present in some of the examples given previously in this thread (e.g. "The Gemini Effect"). In that book, the hyphenation appears to be 'correct' (i.e. breaks at a location that agrees with syllables shown in dictionary). Search does find all instances of the word, hyphenated or not.
It's not clear what it takes for 'typographic drop capitals'. The books I've looked at so far that have them are not improved. Maybe this only applies to newly submitted books, or maybe they have plans to 'recompile' existing books over time for this.
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