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yes, the 700 zoom feature can zoom and pan ; you can choose the level of zoom using a slider, and move around the document by dragging with your finger / stylus or by touching (clicking) one of the arrows located on each edge of the screen. this is good for images although a bit slow ; i don't think it would be comfortable for reading text.
as for generated content, what do you mean exactly ? i read a lot of "generated" content in the sense content i've transformed into an ebook myself (rss feeds, homemade ebooks...) and depending on the format it works perfectly well. epub is my format of choice and i've got really no problems as such to mention.
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