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I'm tempted to say you want one or the other, but not both:
1. Indent, no lines between paragraphs.
2. No indent, one line between paragraphs.
I've read ebooks with either way, and even ebooks with both indents and lines. The main purposes of either is to distinguish one paragraph from the next, so it doesn't become on big wall of text. But since real estate is also an issue, I think indent and no line between paragraphs is probably preferable. But it does not bother me either way.
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