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ProDigit, your first issue doesn't seem to be a "real" issue:
"Zip" itself isn't a compression format itself, Zip allows different compression formats to be used. Thats why sometimes incompatibilities can occur. Let's say we would use a zip-container with deflate as compression format then we wouldn't see any incompatibilities because deflate is specificied within RFC 1951 and widely used and accepted.
The other issue you mentioned - the hardware - seems to be another non-issue too:
ePub isn't much more than (X)HTML, images and some meta informations within a zip-container. If ePub does work on mobile reading devices then other (X)HTML-renderers using compressed (X)HTML would work too. And as Ea already pointed out there are some current reading devices which already do offer some kind of HTML-support out of the box.
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