Thanks for the reply!
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A MOBI file created by KindleGen is a Master MOBI that contains both the older MOBI7 and the newer KF8 formats in a single file. Different Kindle apps/devices will use either one or the other of these formats.
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I got better display results on iOS by converting epub to mobi using Calibre. Then I unpacked both mobis (kidlegen and calibre) and they all contain mobi7 and mobi8 folders. Does it mean that the preferred format is determined by some obscure factor, or simply that Calibre's MOBI7 output is better than KindleGen's one?
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Selling your book via the Kindle store would solve these problems. Non-purchased books are second-class citizens in the Amazon ecosystem.
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If I want to avoid the store and distribute the book for Kindle without any DRM, are MOBI/PDF formats most suitable to achieve that? I've seen some books with the AZW3 extension, can KindleGen make it?
Do I have any other options?