By the way, there is kerning, hyphenation and ligatures with Baskerville and Caecilia too on the iOS app. Palatino only has hyphenation.
Therefore we could safely say that hyphenation is system-wide now, no matter what type you use.
I also use typefaces I extracted from Paperwhite firmwares with my Kobo. I checked them and they also have kerning and ligatures with Baskerville and Caecilia. Strangely enough. Palatino has kerning there, but no ligatures.
I haven't checked others.
But I think when the Kindle updates comes, Baskerville, Caecilia and Palatino will also have kerning. And the first two will have ligatures.
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