The "right" margin size is a matter of personal preference. What seems absurdly large to you seems just right to me. What seems like a waste of screen space to you seems like a pleasant aesthetic separation to me, much better than text crammed up against the bezel. It's a matter of personal preference. On e-readers where I have the option of narrower margins, I don't use it. I may even use wider margins on my Kobo e-readers to achieve symmetry with the header and footer. It's an aesthetic issue that I don't expect you to agree with, but I don't like your personal preferences regarding margins either.
A different matter is that, beyond our personal preferences, there is an option on the e-reader so that each person can choose the margin they like best. And when we say margin, we also mean font size and line spacing. In this regard, Kindle is one of the worst e-readers out there. It's not that the others have much better original software, but they do allow you to modify them by means of patches or by editing files.
But, as I always say, in the end you always end up using only one option out of the many or few you have. And if that option is available on a Kindle, you don't need anything else. I have no problems with the Kindle's margin, line spacing and font size options. And therefore I have no problem with its reading programme. I don't know if other users like or dislike the customisation options on the Kindle. All I can say is that it remains the first choice, by far, among e-reader users. And there must be a reason for that, beyond stupidity and masochism.
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