There's one feature that only works with books in azw3 format (probably also mobi/both, I've not tried it). And that is the FONT_RAMP hack which allows you to use your own custom font sizes. FONT_RAMP doesn't work with books in kfx format or in the plain mobi format.
Before getting the Oasis 2 with 7'' screen, I was satisfied with the default font sizes. But the default sizes no longer worked for me on a larger screen (they were either too small or too big), so I installed my own sizes and find them irreplaceable. Admittedly I have rather poor eyesight.
So there's at least one advantage for sideloaded books.
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