If they supported reading of (DRM free) ePub format, expectations would be that it would also be something that you could annotate and that it could be stored as Personal Doc with location/annotation syncing, and read with any of the Kindle apps.
Likewise there is no reason to support it as a format you could purchase from Amazon (presumably with DRM). It would just create a lot of confusion for the 99.44% of Kindle customers.
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