As near as I can tell, both kepub conversion tools output very similar code. I haven't compared the conversion code in the original Kobo Touch Extended driver to that used by Kovid Goyal in calibre's builtin conversion so can't say how much was re-used. I did check for some errors that were generated by the KTE driver conversion and the code in calibre 8.01 did not generate the same errors.
Personally, I use ePub for any books that do not have hi-res graphics that I might want to zoom so will leave the Use Kobo viewer for EPUB books option unchecked for now. Perhaps the next Kobo firmware revision will have me revisiting that decision.
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