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I have a paperwhite, and use Calibre. I have had no problems with any formats; Calibre converts them flawlessly, if they do not have DRM. I read library books and purchased books from Amazon.
Be careful. After 8 years, I have a problem readying a paper book. It just seems so clumsy. I originally bought the kindle for exactly the reason you mentioned-bringing books on vacation.
The main advantage to the paperwhite versus the tablet is if you want to read in bed ort outside in the sun. A tablet is less than ideal for both of those. i found it took me longer to fall asleep when I read on a tablet in bed, versus a paperwhite.
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