We considered making the switch to --mobi-file-type=both after all, and I just wanted to come back here and give a heads up for anyone who might come across this thread in the future: neither AZW3 nor the new or both MOBI formats will work with Amazon's Send to Kindle option, so if Send to Kindle support is important for your users, you'll have to stick with the old MOBI format and all of its limitations.
Hope this helps save someone else some time!
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