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As I've been saying, KFX doesn't need to exist. And I've been also saying that darryl said that you do what KFX is doing with KF8. Amazon would just have to modify the renderer. Adobe did that with RMSDK (ADE) and ePub now can do hyphenation, ligatures, kerning, and variable spaces. This is all without the need for a new format.
A lot of us want our reading experience to be the way we like it. The problem is that we don't get this out of the box. So we resort to patching/jailbreaking our Readers and/or modifying the eBooks to deliver what is a good reading experience.
Amazon delivers a reading experience that most people don't mind. They download their eBooks and as long as they get that reading experience without any gotchas, they are happy with the status quo. They don't know the format of the eBooks they read. They don't know if there is DRM or not. They just want to read and as long as Amazon allows them to read the way they have been, they are happy. For these people, in most cases, Amazon has improved the reading experience with hyphenation, ligatures, and kerning. Now people can improve that even more with the ability to increase the weight of the default fonts and can set more font sizes. KFX, and the new font controls are only available on a PW2 or newer. This is where Kobo shines with their support for older devices with new or newish firmware. So from that perspective, you do get a better reading experience from Kobo on older devices then you do from older Kindles.
Amazon could go one step further to improve the reading experience by removing Mobipocket as a supported format. That way, those that make eBooks for use with Kindles could use more advanced features without having to deal with an obsolete format. Amazon could say that Mobi is going away and give people a year to save to buy a newer Kindle to replace the older one.
But overall, Amazon gives most customers what they want for a reading experience and until it's shown to Amazon that it's not working, Amazon won't change.
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