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I won't say that mobi is better than azw3 by fiat. Mobi has just about everything you need to read prose fiction. And indeed, in many cases, the limited formatting allowed by mobi limits the bad formatting that publishers like to inflict.
However, since the question was asked, some things that azw3 supports that Mobi does not:
Margins: both left and right. People have been faking something that resembles a left margin by nesting paragraphs in indented blocks.. But anything that uses different margins for some types of text, (block quotes, usually) will benefit from AZW3.
Float elements. Most often used for a drop cap. (where the text actually flows along side the drop cap, not just large letter.
Customizable font sizing. em for the win.
Ever since the Kindle touch ( and maybe on older models, somehow, I don't know.) Images in AZW3 files can be zoomed and panned. Great for maps, and what not. Kindles are the best e-ink readers I've seen for handling large, high resolution images smoothly.
I haven't tested this since the Kindle touch, but turning *back* oages on AZW3 viewer was much, much faster than mobi files.
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