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You're not gonna like the answer, but reading PDFs is inherently difficult on small screens. And to be clear, this isn't the fault of Kobo: the PDF itself is a digital format that is trying to reproduce an 8.5x11" piece of paper. On anything that is smaller than that dimension, the display device is forced to shrink, crop, or pan-and-scan in order to show that PDF. You don't get the reflow options available with, say, an EPUB, because the whole point of a PDF is to try to represent the original image as closely as possible.
If you want an e-ink reader dedicated for PDFs, I'd go with an Elipsa. But bear in mind that one probably won't comfortably fit in your coat pocket.
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